A stockbroker as the name suggests executes financial transactions on your behalf. This could range from commodities to any other form of investment. A broker needs to execute all the transactions and for that, they do end up charging a commission. An initial reaction would be to opt for low brokerage high exposure brokers in India, but you need to figure out the various types of brokers which are the traditional brokers and the discount brokers.
The full time brokers levy a hefty charge, whereas a discount broker charges comparatively less but in case of the former they end up providing customized services. It is suggested that investors need to be aware of the services and benefits of discount and full time brokers before they go on to opt for one.
Hereby there is a brief outline that would enable you to choose a broker of your choice
Discount brokers are also referred to as online stock brokers that allow clients to execute transactions on their own and no form of interaction occurs with a live broker. This sort of broker would be ideal for an investor who is pretty much conscious about charges. They are brokers who are not going to provide you with any type of investment advice. But at the same time, it is common for a discount broker to provide you with research-based tools that eventually helps you make better investment decisions.
As these brokers are going to execute mere transactions, the fees levied would be a lot lesser than the traditional broker. But do check out whether they are any hidden charges when you go on to avail the services of such brokers.
Pretty much as the name suggests these are brokers who go on to provide a wide array of services. They include investment and tax planning, retirement and financial planning, regular updates on your portfolio to name a few.
As they are brokers who end up providing personalized services, they do charge a hefty charge for their services. Just go through their package on what are the type of services they go on to provide before you end up availing their services.
To conclude, from our discussion till now we have found basically a couple of types of brokers. This all depends upon the investment decision you are planning to make. In case of a discount broker, they are going to levy a flat rate on each transaction and in terms of broking services it is very rare. Though some of them may provide certain advisory services. This works ideally for a trader who is more into online trading.
On the other side of the coin a traditional broker charges commission on the basis of each trade that is executed. They are ideal for frequent traders who need advice on a time to time basis and a wide range of services are provided by such brokers. Most of the brokers have a strong all India presence with branch offices opened.