Full-service brokers vs. discount brokers: Which one to choose?

The first thing to decide while choosing a broker for investments is whether to opt for a full-service brokerage or select a discount broker. But this task is not easy said and done. It makes individuals baffled and leads them to sleepless nights (literally and technically). However, we believe that knowing the differences between a full-service broker in India and a discount broker can make the task a way easier. It can help the traders identify their needs and take the decision based on knowledge instead of intuition. So, let’s get started!

Full-service Broker:

All brokers execute trades for their clients but full-service brokers walk an extra mile and provide research and investment advice to the clients. Usually, they offer trading (stock, commodity and currency), investment banking, asset management, research and advisory all under one roof. They also allow their clients to invest in Forex, Mutual Funds, IPOs, FDs, Bonds and Insurance and even offer demat-account services along with advanced applications in order to enable the investors to access their trading accounts and check the market performance without any human intervention.

Benefits:

  • Offer guidance and research
  • Equipped with advisory team
  • Provide direct access to research
  • Offer a plethora of investment tools and solutions under one roof
  • Make investment decision on behalf of the clients

Discount Broker:

Discount brokers are stock brokers who carry out buy and sell orders at the lowest commission. They offer no investment advice nor do they provide research reports. They only execute trading in stocks, commodities and currency derivatives and do not include investment banking, asset management, forex investment, IPOs, FDs, bonds and insurance in their service list.  In other words, they offer no-frills brokerage service, where the individuals need to take buy and sell decision on their own.

Benefits:

 

  • Offer affordable cost
  • Enable trading process without hitch
  • Help the traders save a huge capital on transactions due to minimal commission
  • Some offer automated trading platform to help the investors save time

So, to conclude, if someone needs an array of investment tools and services under one roof along with good and competent research reports and advice, then a Narnolia Securities Limited a full-service premium brokerage firm would be the best choice without saying.