In India, there are mainly two kind of stock brokers-
- Traditional Broker or Full Service Broker
- Discount Broker
What is Discount Broker?
A discount broker is one who charges brokerage or commission on per executed order. They charge brokerage only on executed orders like Rs. 5 /Rs. 10/ Rs. 15 or Rs. 20 etc. per order. Following are the key characteristics of a discount broker –
- Carries out buy and sell orders at a fixed reduced commission rate.
- Useful to those who actively buy and sell shares on a frequent basis.
- Investors who just want their trades executed are also usually prefer discount brokers as discount brokers do not provide research & advice.
- No dedicated Relationship manager and no physical branches presence.