Discount brokers Vs Full service brokers: Which One Should You Pick?

What is Discount brokers?

Discount brokers are Stock brokers who generally have low brokerage charges then Full service broker. Due to automation, discount brokers brokerage charges are low. So, you need to pay less GST, if you opt for Discount brokers.

Full service brokers have more brokerage charges as they generally have more employees and Branches than discount brokers. They provide more facilities like Investment advise, that’s why they are more expensive.

Let’s understand it with real life example:

Let say you open Demat account at Full service broker then you bought shares of Rs 1 lakh in delivery.

And lets assume Brokerage criteria of full service brokers: 50 paisa on 100 Rs.

So, here you need to pay brokerage charge of Rs.500 and 18% GST on it which is 90 Rs.

In this scenario if you opt for Discount broker you need to pay zero brokerage. As brokerage charges are zero in delivery than you don’t even need to pay GST in this scenario. But for Intraday transaction things are quite different.

Discount brokers Vs Full service brokers:

But with so many brokerage firms available online, it is really hard to decide which one to pick for yourself. In this article we have made it easy for you to take your pick and start trading online!

With the number of brokerage services available, it is difficult for an investor or trader to choose the right one. You have to be extremely sure about what you want so that you choose the right broker for yourself.

Here are the key players for online stock trading in India:

Here we divided brokers in three types:

• Discount Brokers
• Banking Brokers
• Full Service Brokers

List of Discount Brokers in India:

• RKSV Securities:

RKSV is a private online stock brokerage company based in Mumbai, India. It was established in 2009 by 3 co founders namely: Ravi Kumar, Raghu Kumar and Shrinivas Vishwanath. RKSV stands for the initials of its founders who had around 25 years of combined experience of trading in developed markets.

Before the inception of the company, two of its founders, Ravi and Raghu Kumar happened to run their own proprietary trading fund for almost three years in the US, before they moved to India.

They come up with a popular mobile based platform called Upstox.

RKSV has memberships with BSE, NSE, MCX and MCX SX. The company offers the retail institutions and the institutional corporations the facility to invest in stocks, futures, options as well as currencies and commodities at rates much lower than the traditional full service brokers.

RKSV is a SEBI certified company with an impeccable track record. RKSV is changing the traditional model of the brokerage business mainly by attracting the high value traders with their exceptionally low commissions.

You can read full RKSV Securities Review here.

• Zerodha: 

The largest and oldest discount broker in India is Zerodha amd maybe the most popular discount broker in India. They have over 4 million users all over the country and have a very competitive brokerage structure.

Even the process of opening an account is easy and you can complete almost all of it online. With a discount broker, you will never have to physically visit them and everything can be done online. 

Zerodha’s share trading platform is powered by Omnesys ‘NEST Trader’. All trading platforms including trading terminal, website and mobile trading are made available to its customer for free of charge.

• Tradejini:

Tradejini is a leading financial services company founded in July 2010 and is based in Bengaluru, India. The company is a member of the major stock exchanges namely BSE, NSE, MCX and MCX SX.

Since its inception, the company has come a long way into becoming one of the highly sought after online brokerage companies.

Tradejini has a nice trading platform on which the customers can trade anytime and anywhere.

On the one hand, being fully-featured makes it suitable for the sophisticated trader, it’s helpful and intuitive features also make it friendly for a novice. You can read full Tradejini Review here.

List of Banking Brokers in India:

• Axis Securities:

Axis Securities Limited offers you with a wide range of products that will help you cater to your needs. You can open one account to invest in Equities, Mutual Funds, SIPs, IPOs, Bonds, NCDs, Derivatives, Company Fixed Deposits etc.

As a customer you will also be able to avail other banking solutions through them such as Home Loans, Personal Loans, Mortgage loans, Loans against shares, Credit cards etc. With multiple access channels and a financial education center, Axis Securities is a top notch choice. 

• Kotak Securities:

Kotak Securities is a full services broker offering wide range of investment options and research reports. Kotak Securities has extended network of 1400+ branches across India.

It offers 3-in-1 account, the combination of broker account, bank account and a demat account. All these accounts are linked together and work seamlessly to make stock market investment very easy especially for beginners in stock market.

Their brokerage charges just like other banking brokers are higher than the discount brokers. And Commodity trading is available through another company ‘Kotak Commodity Services Ltd’.

• HDFC Securities: 

HDFC Securities is one of the biggest broking firm in India and with the assistance of their financial branches, they have an enormous organization that can be just coordinated by ICICI.

They have outreach in significantly more modest towns and urban communities. They are a decent financial representative and offers all significant types of assistance, for example, an examination work area, common asset speculations alongside portfolio management services.

They are a good banking broker and provides all major services such as a research desk, mutual fund investments along with portfolio management services.

• SBI Capital Securities:

SBI Capital Securities Ltd (SSL) is a 100% subsidiary of SBI Capital Markets Ltd. Services offered by SBICAP includes Institution Equity, Retail Equity, Derivatives, Broking, Depository Participant services and E-Broking.

They also offers Portfolio Management Services. They have Instant Fund and Share transfer facility and have 24X7 access to back-office.

• ICICI Direct: 

One of the greatest broker in India, they have a quite fair help and a simple to utilize UI. Anyway their business charges are higher whenever contrasted with different agents.

Their rates start from as high as .5 to .2 in rate terms and it relies upon the estimation of exchanges that you do with them. Their selling point is the way that they give consistent combination your ICICI account which makes moves and withdrawals simple for the financial backer.

ICICI direct is a very good broker if you are an investor, however it is not so well suited for traders.

List of Full Service Brokers in India:

• IIFL: 

IIFL was founded in 1995 and has presence in eight countries apart from India. With 4000 business locations, IIFL allows you trade across multiple platforms or over the phone as well.

You have a dedicated relationship manager who will cater to any request that you want to fulfill. They provide exclusive coverage of markets, companies, and organizations along with Heat Maps.

You can trade using a single swipe on the mobile app armed with the expert research that they provide.

• ShareKhan: 

ShareKhan is the second biggest stock financier firm in India if number of customers are thought of. Set up in 2000 soon after internet exchanging became official standard in India, ShareKhan gives online business administrations through its exchanging site everywhere on the country.

It has presence in more than 575 urban areas across India and there are 1950 offer shops which incorporate a wide range of branches and establishments.

With one of the cheapest brokerage in India, Sharekhan comes to its traders with all the solutions under one roof. Constant market updates and most recent research material is all made vailable for the clients by the firm.

• Motilal Oswal: 

One of the most popular full service brokers in India who have been in the game since Angel Broking’s time, they have a much diversified client base that includes retail customers who have a very high individual net worth along with various corporate clients as well.

Motilal Oswal Financial Services Ltd. was established by Motilal Oswal and Raamdeo Agrawal in 1987 in Mumbai, India. Since its inception, it has evolved into one of the leading players in the financial services arena.

With 29 years of wealth creation and a geographical presence in 500+ cities and 1900+ outlets, the company has emerged as a reliable option for the customers.

The company provides all trading and investment solutions ranging from equities to insurance under one roof.

The products include equities, derivatives, commodities, currencies, mutual funds, PMS (Portfolio Management System), IPOs, insurance, fixed income, etc. All the products are backed by customized solid research and advice. You can read full Motilal oswal securities review here.

• Angel Broking:

Set up in 1987, Angel Broking has become quite possibly the most well known stock broking firm in India. In course of time they have constructed an unbelievably colossal organization of Branches and establishments, with presence in excess of 900 urban communities alongside 8000+ establishments.

This network helps the company maintain a firm support system for investors who like some form of human interactions in this world of faceless online trading.

Their services are available in all platforms and devices so you don’t have to worry about trading while you are travelling. With a client base of 1 million who do you want to trust more than them?