Stock market trading has become an important component of many people around the world. People trade in securities like shares and debentures in order to earn profits over and above the invested amount. Moreover, people have converted trading in securities a whole-time business and reply on the returns from investment for earning their livelihood. With the advent of electronic system of securities market trading and dematerialization of shares, the whole process has become more reliable and secure. However, the new system imposes certain rules like registration with securities and exchange board of India (SEBI) and opening up of DEMAT account etc. This can make the whole process intimidating and can damage the credibility of the stock market trading business.
In order to overcome this fear, traders employ the services of stock market brokerage firms and individual brokers. They act as middlemen who provide various services like stock market instruments analysis and provision of requisite market information along with assistance in buying and selling of shares etc. They charge a certain fee for their services which are termed as brokerage.
There are various types of brokerage companies which provide different services along with customized investment plans like zero brokerage plan. There are certain brokerage firms which provide assistance in buying and selling of securities and charge brokerage on the basis of trade volume or flat rate basis i.e. charging a fixed sum of money per transaction. They provide limited services and charge a reasonable amount for their services. Such brokerage companies are termed as Discount brokerage firms/brokers. Best discount broker in India provides other allied services and benefits to traders like online trading tools and faster withdrawal of invested amount along with the basic services. This provides them with a competitive advantage against other brokerage companies and traditional individual brokers. A discount brokerage is relatively a new concept in India and is faster spreading its roots in the trading and brokerage industry.
Discount brokers provide limited services and are marked by a limited asset model which is the main reason behind less brokerage. They charge on the basis of a number of securities traded and have lower margin percentages as compared to full-service brokers and companies. The most important service provided by discount brokerage firms is the online system of trading. This helps traders and investors to get real market information through an online system of trading. Discount brokerage firms and individual brokers provide customized online trading tools and platform. Discount brokerage firms help traders to deal in securities depending upon their budget and needs. Small traders with limited financial needs and investment limit choose discount brokerage firms. They serve to be a better option than full-service brokers who charge brokerage at exorbitant rates. Hiring the services of discount brokerage firms to help traders reduce their consultation costs which suit the need of small traders and investment beginners. Traders and investors must carefully analyze the services provided by various brokerage firms and choose the best among them for fulfilling their investment needs. Selecting the best discount broker in India is an important decision which must be taken after in-depth market analysis. A professional discount broker increases the chances of earning greater returns combined with less brokerage