To avail the best of trading options, you need to avail a solid understanding of the subject and choice of a proper broker is important. But with the market flooded with various brokers the choice of one can be a difficult task. Before you opt for the route of choosing a broker you need to figure out whether you need a full service or a discount broker.
Full service broker
Pretty much as the name suggests these brokers roll out full time services. They provide complete service to clients. The moment you open an account with them you will be directed to a full time manager managing your accounts. They are going to understand your needs and evaluate a decision based on your personal goals or needs. In fact to achieve your goals a suitable plan would be put in place.
Updates on your trading performance and the stocks to trade will be provided by such brokers. The main reason on why to avail services of such brokers is self- explanatory in nature. If the need arises you might be provided with instructions on how to execute trade.
The choice of discount brokers in India straight forward as less hassles are involved. For any trades you are likely to execute these brokers are in place. In case if you are having an account with them it does not mean that there is scope of personal interaction. These brokers would execute the transactions that have been requested at your end. The top quality brokers make the process easy and hassle free as far as possible.
The main benefit of a discount broker in comparison to a regular broker is the fee structure. The fees or commissions are going to be a lot lower than a regular broker. The reason being that the broker provides you with a basic service. It would be really important for traders who are dealing with a small amount of investment capital.
The discount brokers do offer discounts for traders who are executing a lot of transactions on a daily basis. No need to provide discount to anyone who does not need the services. The onus is on an individual to execute transactions be it in the form of profit or loss.
A point mentioning is a lot of discount brokers have tools or tips which enable you to execute trades. Apart from paying a regular chunk of commission you might have to pay some additional fees in order to use these tools. To sum it up if you are comfortable to make your own decision without any form of interference then discount brokers are a good choice.
To conclude by now the difference between regular and discount brokers are pretty much obvious. It is still useful to understand on how both the type of brokers work, but a point mentioning is that a lot of broking firms offer both the services. It all depends on what you are looking to avail.