Come the period of 1970s the concept of discount brokers was introduced to the entire world. There are numerous discount brokers in the market and all of them share common traits
- They roll out lower rates of commission sticking to stock trades
- To simplify the process of trading they have access to online trading platforms
- The discount brokers are expected to provide you with some tools helping you to evaluate and choose the best stock as per your needs
- With a discount broker you can end up opening a wide array of accounts. This extends to even taxable form of accounts
It would be true that these discount brokers are better as compared to others if they provide such services.
How to figure out whether opting for a full time service or discount broker is a better choice?
The choice of any broker might help you to reach out to your investment goals. But do select a broker that aligns with your investment temperament. If you fit yourself in the below categories you can choose a discount broker
- There is not a lot of money to invest and you do not want to be paying hefty commissions or charges
- Ideally you want to make your own investment decisions and do not want to be bothered by salesman rendering you unsolicited advice
- The comfort level is there of using mobile and online interfaces for execution of trades
- You are well equipped in how to use resources or tools to provide valuable insights On how to make smart decisions with your company
- There are other financial officials who are supporting you and you do want a broker to provide you with conflicting viewpoints about trade execution.
But the following brokers might work out to be a good solution if
- The mere thought of investing scares you
- The brokerage relationship that you have with your broker is only one aspect of the relationship. They are going to manage various other areas like wealth management, commercial relationships etc.
- You do not have the time to make investment decisions.
A smart choice:
In case of most investors a discount broker could be a better choice. Considering the financial incentive associated with a full time service broker, if you are able to use a discount broker in an efficient and effective manner it would be really beneficial. It is not only going to save costs, but you would be aware on what needs to be done so as to be smarter with your money.
In due course of time there is no better way than earning money rather than investing in a stock market. But choice of the wrong broker can prove to be a major dent in your money making potential. Hop on to the internet and look for the top discount brokers in India. Numerous names might spring up which would make your decision an easy one. There are lot of discounts and freebies which the stock brokers offer.