Discount Broker Kya Hai: The most important broker in the stock market is the broker through which any investor can trade in the stock market. All of you must know that an investor cannot trade directly in the stock market. To do trading, the investor needs an intermediate, these are intermediate stock brokers.
There are many types of stock brokers depending on their services, but the stock broker which is most discussed nowadays is the Discount Stock Broker, which we will tell you about in today’s article.
In today’s article, you will get to know what is a discount broker, which services discount brokers provide to their customers and which services they do not provide, what are the benefits of discount brokers and also about some of the major discount brokers in India. You will get to know this in this article.
So stay tuned till the end of the article to get complete information about the discount broker. So let’s start this article of today – what is a discount broker?
A discount broker is a stockbroker who deals in buying and selling orders at a very low or flat brokerage as compared to a full-service broker. Discount brokers allow investors to trade in the stock market at very low commissions.
While full-service brokers charge a specific commission brokerage based on the trading value, discount brokers provide trading services at a flat charge to their clients.
But a discount broker provides very few services to its clients as compared to a full-service broker. The main objective of a discount broker is to give discounts to investors in trading. But full-service brokers provide services like Market Insights, Research, Depository Services, Wealth Management Services, etc. to the clients, so their charges are also high.
Simply put, such brokers who provide the facility of trading at low prices or discounts to investors are called discount brokers.
India’s first discount broker is Zerodha, which was started in 2010, initially, discount brokers were not so popular, but as the internet became a part of people’s lives, many discount brokers also came in the market. And at present, many popular discount stock brokers like Groww, Upstox, and Angelone are available in India.
Let us also take a look at the service provided by the discount broker to its clients –
Discount brokers do not offer many types of services to their clients as compared to full-service brokers.
Some of the major advantages of choosing a discount broker are as follows –
At present, there are many discount brokers in India, in this article we have told you about the 7 best discount brokers, with which you can open your Demat Account.
Upstox is one of the fast-growing discount brokers in India. Upstox is funded by Ratan Tata. Upstox was started in 2012 under the name RKSV but in 2015 its name was changed to Upstox.
Upstox is the second largest discount broker in India based on the number of clients. With funding from Ratan Tata, Upstox became a trusted discount broker in India.
You can open your account in Upstox for free, but in this, you have to pay an Annual Maintenance Charge of Rs.300. On Upstox you can do equity delivery without any brokerage charges and on intraday, you are charged Rs.20 per trade.
Zerodha is India’s first discount broker which was started in the year 2010 by Nitin Kamath ji. Zerodha is the largest stockbroker in India based on the number of clients, and the support of Zerodha is also very good.
You have to pay Rs 300 for opening a Demat account in Zerodha, like Upstox, Zerodha does not charge any brokerage for equity delivery and Zerodha charges Rs 20 per trade for intraday trading.
Groww was established in 2016 as a direct mutual fund platform, but later Groww also started the service of discount brokerage.
In Groww, you can open your Demat Account absolutely free of cost, and here you do not even have to pay any Annual Maintenance Charge. Groww charges you Rs.20 for each delivery trading and intraday.
5Paisa also provides the facility of discount brokers to investors. 5Paisa was launched by IIFL (Indian Infoline) one of the most popular Full-Service Brokers in India. It was launched in IIFL in 2015.
There is no charge for opening an account in 5Paisa, but you have to pay a maintenance charge of Rs 45 per month.
5Paisa charges Rs 20 for each delivery and intraday, but if you are a premium subscriber of 5Paisa then you only get charged Rs 10 per trade.
Angelone, which was earlier named Angle Broking, was established in 1987. Angelone is a well-known stockbroker with over 30 years of experience as a broker. Although earlier Angelone was a full-service stockbroker, later it changed its services.
There is no charge for opening an account in Angelone, but in this, you have to pay Rs.300 Annual Maintenance Charge. There is a charge of Rs 20 for each trade in Angelone.
Samco was established in 2015, it is a very low-fee stock broker. In Samco also you can open your account absolutely free. Samco charges an Annual Maintenance Charge of up to Rs.400 from its customers. In this, you are charged Rs 20 for each trade.
Trade Jini is also a good discount broker which is very popular in South India. In this, you have to pay Rs.300 to open an account and Rs.300 Annual Maintenance Charge is also applicable. In Trade Jini also, there is a fee of Rs 20 for each trade.
A discount broker is a stockbroker who gives discount to the investor on trading in the stock market or gives trading facilities at very low prices.
Discount brokers do not offer such facilities to their clients as Market Insight, Research, Market Input, Wealth Management Services, Depository Services, Offline Phone Call Services etc.
India's first discount broker is Zerodha which was started in 2010 by Nitin Kamath.
Discount brokers charge a flat brokerage charge on trading. Most discount brokers charge a brokerage charge of Rs 10 – 20 per trade.
With the advent of discount brokerages in India, investors do not have to pay more for brokerage. A discount broker is a good option for an experienced investor who has knowledge of Market Insight, Research, etc. But a discount broker may not be a good option for a new investor who has no knowledge of market inputs. Therefore, before investing in the stock market, you should also determine which broker you want to go with.
After reading this article, you must have understood that Discount Broker Kya Hai and are the best discount broker in India. Hope you liked this article, do share this article with your friends on social media.
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