Discount brokers will offer high speed, lower brokerage, and a fast platform for trading in commodities, stocks, and currency derivatives. The brokerage charge over here while trading the discount brokers is lower when compared to the traditional ones. The traditional brokers will charge hefty commissions, which is not the case with the Discount Broking Platform in India.

On the other hand, the discount broker’s business model is pretty straightforward. Here, they present a flat brokerage rate for every possible trade that the clients make. It will not depend on the trade’s size. The rate is usually between 10 to 20 rupees for every order.

Then you have the full-service brokers, which will charge a fraction of the fee on transaction volume. The commission will be as high as 0.25 to 0.7% of transaction volume for all the delivery transactions. So, the volume increase for the transaction will result in more and more brokerage payments.

Once you understand the power of brokerage firms and the values associated with the discount brokers, it is time to check in with the available options in the market, which are worth investing in.

How discount broker differs from the traditional ones:

Discount brokers differ from their traditional counterparts in multiple aspects. You might find that trading services will be the main center of attraction for both businesses, but there are some differences which are worth mentioning.

The customer support service:

Most of the customer communications from the discount brokers will be through web services like chats and emails. The best-discount brokers will be using chatbots, which will be added with machine learning and AI. 

• Their services are available 24 x 7, and they offer promising customer support services.
• Traditional brokers will use a proper mix of offline and online services for interacting with the customers. 
• Apart from the digital modes, traditional brokers further deploy services like branch servicing, doorstep servicing, relationship manager assistance, and more.

Inputs of the market:

In case you are one seasoned investor who can conduct their research on their own, you can always plan to get help from a discount broker. But, if you are new to trading and cannot understand the tactics of the market, the traditional broker will be your best shot.

• It is mainly because the traditional ones have an in-house team of experienced researchers. 
• They will gather information to help you make one informed choice.

The service types are as follows:

For a full-service broker, the portfolio will extend more than just trading services. It will have tax advisory, market insights, research, depository services, wealth management services, and more. 

The systems for presenting such services will be manned by a team of advisors and analysts. It will add more to the administrative overhead of traditional brokers and push up the price tag for the services.

Then you have discount brokers, who will run the “no-frills” model. They cut down the cost by dealing with core transactional services. So, next time you are looking to open Demat account, you might want to get help from discount brokers. It is one proper way to save some bucks!