Stock Market Learning Blog


Monday, May 18, 2020

Discount Brokers vs Full Service Brokers India

Discount Brokers vs Full Service Brokers India

Hello investors today I am going to write about, Discount Brokers vs Full Service Brokers India which one is suited for you, many of the traders and investors are facing to chose the broker which suits their wants and needs especially  beginners who are interested to enter into the stock market

there are facing the problem in choosing the best brokers a bulk of e-mails I received and my friends who are enthusiastic about learning about market all are facing that problem main aim of the article is to give a complete details about full service and discount brokers.

When I am a beginner I too faced this much of various problems while I enter the market. I have seen a lot of blogs and I received suggestions from my professors to choose the broker if you are really facing the problem of choosing broker then your in right platform. after the end of the article, you may understand the brokers and decided to choose your broker without other support it's my challenge.

Difference between full service and discount broker :

Full-service brokers :

Full-service brokers are traditional brokers, they came from the traditional background, they provide trading in (equity, commodity, currency, options, futures) all segments in stock exchanges, full-service brokers provides all facilities to their clients like research, trading advice, high-quality charts, various indicators.

And they also provide advice on various extra facilities like invest in fixed deposits, mutual funds, bonds, Forex, IPO's, and insurance.

And the main thing is they charge high service charges to the client, for example, there are some full-service brokers are ICICI Direct, Kotak sec, SBI Cap, HDFC Sec, Sharekhan, Motilal Oswal etc….

Discount brokers :

discount brokers are modern brokers, they provide an only trading platform, they do not give any advice and tips for their clients, they charge low service charge and low account maintenance charge from their clients, and it works with high speed and easily understandable platform.

A discount broker also provides trading facilities in various segments like equity, commodities, futures, and options. some of the best discount brokers in India are Zerodha, Pro stocks, 5paisa, SAS Online etc…

Comparison between full service and discount service brokers :

Full-service brokers are come up with a traditional background, discount brokers are modern brokers enters the market with a cheap and low service charge.


Full-service brokers

Discount brokers


They provide a trading platform with advice for our investments

They don't provide advice, only provide a trading platform

Customer service

Interaction customer services available

provide online services with only calls

Suit for

It's suited for who can’t spend time in the stock market and who want advisory for their investment

This broker suits for who research their individual and own

Services Add-on

Provide research reports, stock recommendation, margin, funding etc..

Provide an only trading platform

Investment   options

They allow investing in all segments like equity, commodities, future, options, Forex, FD's,  bonds, insurance, mutual funds, IPO's.

They allow investing only in equity, commodities, Forex, Derivatives.

3 in 1 account                  

         Available (mandatory) (Saving+Trading+Demat) 

Not available

Brokerage charge

         High brokerage charge  0.5 to0.55

Low brokerage charge 0.5 ( flat free charge Rs20)

Research department

        Have own research department

No such department find in discount brokers


Have an annual maintenance charge for your account

No annual maintenance charge

Hidden charges

Have some hidden charges

Don’t have some hidden charges

Network (offices)

They have branches in all areas even in small towns also.

They have branches in only cities.

Top brokers

ICICI Direct, Kotak sec, SBI Cap, HDFC Sec, 
Sharekhan, Motilal Oswal etc...

Zerodha, Pro stocks, 5paisa, SAS Online etc…


finally it's your time, which broker you choose:

Apart of above information who are new to stock market who don't have any idea about trading and investing and who is no time to spend in the stock market who want advisory for their investment they go for full-service brokers

Discount Brokers vs Full Service Brokers IndiaAnd who are interested to learn about the market, who don't want to pay high charges, who spend daily some time in the market they go for discount brokers. And at end of the article, it's your decision, time and knowledge matters while selecting the broker.

1 comment:

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