To work with a discount broker might provide you with cheap access to investments. Better decisions along with higher profits are anticipated. With internet spreading its wings in a big way more and more people are taking a liking towards the Top 10 Discount brokers India. They roll out competitive services with the best in terms of customer service assured.
More about the discount brokers
Basically discount broker is a term used to describe a broker who charges a low commission when compared to the market standards. This serves as an attracting force for other clients in this domain. As the rates are nominal they tend to provide automated services via the online platform. They are not going to charge you with an annual fee or a maintenance fee for the accounts of customers. This is a concept that has started in India a few years back and the brokers are not going to provide you with any investment advice. There are a few players in the market, but based on their revenue this is a major share. Of late this form of brokerage has become popular as more and more people are gaining access to internet facilities.
The benefits of a discount broker
The first major benefit of working with a discount broker as an investor is that you can save a lot of money on transactions. When you are working with a full time broker you might have to shell out hefty amount in the form of commission. The rate of commission could be flat or a rate could be levied on each trade. If you are a frequent trader the commission is going to add up quickly. On working with a discount broker you can trade on your own and there is no fear of profits being eaten up.
Another positive aspect of working with a discount broker is the safety angle. When brokers reduce the rate of commission it means that they end up covering things in bulk. In any case the full recommended brokers are all large companies. This would mean that your investment is going to be safer if you are going to choose a small brokerage firm even it appears to be unknown.
The modus operandi of discount brokers is in a straight forward manner. They are going to provide traders a trading platform to trade stocks of their choice. The onus is on the customer to make any transactions of their choice as they are not expected to provide any advice or guidance of any type. They rely on an efficient and reliable service for the benefit of clients.
But all is not a bed of roses as far as the discount brokers are concerned. When you hire them you end up losing a lot of valuable advice that you expect with a full time broker. Apart from this there are several discount brokers which provide a lot of research tools and inputs for the convenience of clients.