Why Discount Brokers Are Getting High Attraction?

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Discount Brokers

Discount Brokers - Who are they?

A discount broker is a type of broker who charges lower commissions on buy
and sell orders than a full-service broker. A discount broker, unlike a full-service broker, does not provide investment advice or conduct analysis on behalf of his or her clients or customers.

Discount brokers have become popular among investors as a result of the
advancement of technology and the rapid popularity of online broking. Discount brokerage is now almost interchangeable with internet brokerage.
Working with discount brokers can undoubtedly provide inexpensive access to
investments, resulting in larger earnings over time. Customers or clients, on the other hand, are not offered personal consultations, recommendations, or
research services by discount brokers.

Discount broking services are geared toward self-directed traders and investors, whereas traditional brokers give substantial learning material through their offices, on their websites, or by providing one-on-one client support.

Discount Brokers have been operating in India for over a decade now with the
concept is first introduced in early 2010. However, the notion has spread across the Indian stockbroking industry, and hundreds of regular traders have switched from traditional brokers to discount brokers since these brokers came into existence.

Advantages of using the services of discount brokers - An Overview

The advantages or benefits of using the services of discount brokers include -

1. Lower cost - The main advantage of using discount brokers is the lower cost, which is usually due to decreased commissions or brokerage fees.

2. Services that are not biased - Because they do not make recommendations, discount brokers have no vested incentive in persuading customers to buy or sell a particular stock.

3. Information - Established discount brokers have a wealth of instructional materials available at their offices or through their websites.

4. Powerful analytical tools - Discount brokers provide their customers with the tools needed to analyze and study markets independently.

The popularity of discount brokers - Why they are becoming an attractive option?

Young users i.e. millennials nowadays prefer technology and doing their own analysis rather than making calls to brokers plus depending on analyst-generated market calls. It’s a psychological and sociological shift that has taken place where millennials are proud of the products that they are using, they care about the brand they are using and they prefer to have a product that resembles themselves. That’s exactly where a discount broker like TradeSmart, Zerodha, and Groww understands users and build the product accordingly.

Individuals with a lower capital base of investment can now engage or trade in the stock market thanks to the rise of discount brokers.
Most discount brokers are now providing low-cost or no-cost brokerage plans, in which users pay a set monthly or annual fee and can trade as many times as
they want, regardless of the number of trades.

Leading discount broking firms in India are seeing strong increases in client
acquisition and overall business volumes where investors can benefit from
almost no to very low brokerage fees.

Some of the leading discount broking firms operating in India include -

1. Zerodha
2. TradeSmart
3. Upstox
4. Groww

Let’s see a few advantages of using a discount broker like Tradesmart -

  1. Lowest Brokerage plans at INR 15 per executed order
  2. AI enabled online KYC for easy and quick account activation
  3. Robust security
  4. Advanced charts
  5. Trade directly from charts
  6. Biometric login for securing your portfolio

Conclusion -

Finally, it can be concluded that discount brokers’ popularity has skyrocketed in recent years, thanks to technological advancements and the allure of low
brokerage rates, and a quick platform for trading across a variety of asset
classes.

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