If you want to invest in the stock market, you have to take the assistance of the stockbrokers. There are two types of stockbrokers- the full-time brokers and the discount brokers. While the full-time brokers are suitable when you are dealing with the bigger amount of money, a discount broker is perfect for the newbies who have just started to invest in the stock market.
As the name implies, the discount brokers are quite cheaper than the full-service brokers because here you don’t get any pieces of advice from them and thus, save costs. Initially, there were two types of discount brokers-
- Conventional discount brokers
- Internet discount brokers
But, today there is no distinction between these two types. Today, conventional discount brokers have their fully featured website, while internet discount brokers can arrange face-to-face and telephone services.
Something More You Want to Know about Discount Brokers
While looking for the best discount broker in India, you need to know how you are going to be benefitted by that. Many people think that investing in stock market is entirely for those who have heavy moneybags. But, that is not true. Anyone can invest in the stock market with the help of discount brokers. The service charge is quite low in comparison to full-service brokers.
Today, you can get lots of information about investing in stock markets on internet, magazines, and newspapers. Before investing, you can do your homework on it and there is no need to get advice from the full-service brokers and pay for that. Discount brokers have their own websites from where you can get more knowledge on the issue. Today, you will know the benefits of discount brokers before investing-
- Lower Cost– This is one of the most important benefits of discount brokers. When you buy stocks or other securities, you don’t need to pay anything more than the real cost of them. But, while you are dealing with full-service brokers, you will be charged a large amount of commission fee which is unnecessary. This fee is based on the amount of transaction you are doing. You definitely don’t want to send 20% of your investment to the broker. Therefore, investing with discount brokers is the best option.
- Safer Option– This is another great advantage of discount brokers. While a broker is available at the lower commission, that means they are aiming to make up in huge. That means the discount broker you have chosen will be a big broker. Thus, your investment will be in safer hands if you choose small brokers.
- Unbiased Service– It is a well-known fact that you won’t get any advice from the discount brokers. That is a good point about them as they don’t have any interest in selling you any specific stock. You can make your own research and choose where to invest.
Hopefully, you get enough information about discount brokers. If you haven’t till invested in stock market, you can choose the best discount broker for you and start investing in the stock market.