In India, there are mainly two kind of stock brokers-
- Traditional Broker or Full Service Broker
- Discount Broker
What is a Full Service Broker?
A traditional or full service broker is one who charges brokerage or commission on turnover basis. Unlike discount broker, they charge a pre decided % brokerage on total turnover of a trade. This % brokerage may vary from client to client. Following are the key characteristics of a discount broker –
- Charge brokerage on trade turnover.
- Useful to those who needs dedicated relationship manager.
- Full-service brokers are a better for those who need professional investment & research advice.
- Full-service brokers have a network of multiple physical branches.
