There are two types of services which are provided by stock broker firms in india since many years , out of which some are old players like ( motilal oshwal) or some are new .Nature of services are almost same of both above said brokering firms so as per their nature honestly they provide demat account or other services to his client. their are major difference between discount brokerage or full service firm , it will be explain later in details. first of all i would like to mention that either in india or other than india both types of investors are actually being traded. first one large investor who invest huge capital in stock market and do grab income from, so they need full assistance or guideline thats reason they prefer full services stock brokering services, Now second one who are new or beginners and nor invested ever before a single amount switch to discount brokering because they have to pay nominal brokerage on their transaction like ( 0.1 paisa to 1 INR) . They invest less so they pay Less Commission.
List of Full services Brokering firm :
- Kotak securities
- Hdfc securities.
- Icici direct.
- Motilal Oswal
Full Services Broker : full services broker offer you a wide range of equity , derivative, future and option, mutual fund, IPO(initial public offer), Insurance, and all related segments. it also includes , research , and advisory relationship manager, how to buy, when to buy and when to sell. such brokering firm also provide a user friendly software and platform where one can easily track their stocks status and their positions. if you are heavy investor i personally advice go with discount brokerage firm rather than full services brokering firm..
some advantages of full services brokering firm…. like
- A beginner investors need to have their hand held by some in initial days of trading
- Investors looking for a verity of financial products for investment through the broker i.e. Mutual Funds, IPO, Debt, Insurance, FD etc.
- Traders planning to use Call & Trade a lot or visit the branch in person. Most discount brokers charge extra for call & trade and do not have local branches.
- Traders who are looking for higher margin or margin funding. A trader can get significantly higher margin based on his personal relationship with the broker or sub-broker.
Now list of discount brokering firm :
- 5 paisa
- Angel Broking
Discount brokering firm : it is stated as their name … such firm offer their services t discount rate and charged very nominal fees from their investor. but discount broker firms donot offer services like.. research, advisory, dedicated relationship management . but provide them only a platform where they engaged in trading. some advantages of discount brokerage firm as below…
Most discount brokers including Zerodha and Upstox offer brokerage free equity delivery trading and direct mutual funds. For all other segments, they charge a flat rate brokerage i.e. Rs 20 per executed order irrespective to the size of the trade
Zerodha is the most famous discount broker with over 10 lakh customers. They are the most popular broker in India with excellent product and services.
A discount broker like 5paisa also offers free research and advisory to all customers( but having few limitations)