The discount brokers have come up as a new kind of brokers in the Indian stock market. All people are aware of the fact that in India the rising trend of using the internet has revolutionized the financial sector. It has prompted increased online activities of investing. The discount brokers emerged in the stock market so that this trend of using the internet could be catered. The discount brokers normally proffer cut–throat brokerage and also provide efficient customer services. Hence among the traders who look for low brokerage service providers, they are most popular as they can help the traders save handsome amount on brokerage.
The discount brokers appeared in the scene in 2010. In contrast to traditional or full-service brokers, you will find the discount brokers less in number. They do not take hefty fees but levy very low charges in comparison to their competitors the full-service brokers. In addition, they don’t realize annual fee from the customers on their accounts.
It is very interesting that these discount brokers are working effectively in spite of low charges. It is possible due to the reason that they carry on their trade with the help of a few employees, only less products, and do not give any advisory services. In recent times these discount brokers are becoming extremely popular in India. With the increase in population on internet and inability of the full-service brokers to cater to the needs of the present times has contributed to the rise of the discount brokers.
Method to select a discount broker in India
To pick a discount broker to a large extent is dependent upon the needs of the investor and the kind of trade he has in mind. Before selecting a broker, it is necessary to bear in your mind that you are planning to do a frequent trade or want to carry out occasional transactions. In a nutshell, keep in mind below given tips ahead of going for a discount broker.
Brokerage
These discount brokers normally charge fees per trade. It is necessary to decide for a discount broker who takes the least fees per trade.
Charges and other fees
Almost all stockbrokers levy other fees such as fees needed to close the account, fees per year, transfer assets, fees taken for inactivity of account, fees for wire transfer, IRA fees, and fees realized not for keeping required minimum balance, etc. Consequently, you should search for some discount broker who does not take all these charges. You ought to see that your needs are met in addition to charges and extra fees.
Customer service
It is customer care service that is a crucial aspect in relation to these discount brokers. Since they are not present physically, and all the issues are solved online without having any idea of location. It is done by means of emails as well as phones. Hence it becomes important to know about the sort of services offered by the discount brokers in the early stage of an account opening as later it cannot be changed.
