Best Discount Brokers in India – List of Top 10 Discount Broker
A discount broker is a type of brokerage firm that offers discounted rates to traders or investors. These brokers complete the buy and sell orders for their clients and work at a discounted commission. The discounted brokers do not provide frill services like research, portfolio management for the clients, they do not have any research team. There are two categories of discount brokers in India on the basis of brokerage, brokers charging fixed rate per trade and brokers charging monthly fees.
With the invention in technology every now and then, the online broking is in huge success as compared to traditional broking. As these brokers provide reduced commission rates, it gives cheap access to investments with higher profits.
Advantages of Discount Brokers
- The lower cost is because of the lower commission, that is why it is called discount brokers.
- These brokers provide unbiased services as they do not give any advice so there is no interest that the customer should buy or sell a particular stock.
- Access to information to all the clients on their website.
Drawbacks of Discount brokers
As a trader has opted for the discount broker no expert guidance will be provided, on the top of it the discount brokers may flaunt their low commission there are too many hidden costs attached with it. Also, these brokers provide very minimum customer support. Trading with discount brokers is very convenient, but it involves too many risks with it.
Ranking of Top 10 Discount Brokers in India
Rank | Broker Name | Ratings |
1 | Zerodha | 7.4/10 |
2 | Bonanza | 6.3/10 |
3 | Upstocx / RKSV | 6.2/10 |
4 | 5Paisa | 6.2/10 |
5 | Beeline Broking | 6.2/10 |
6 | Mdirect | 6.2/10 |
7 | Trading Bells | 6.1/10 |
8 | EzWealth | 6.1/10 |
9 | SAMCO | 5.8/10 |
10 | Wisdom Capital | 5.8/10 |
The above rankings are based on 5 factors which determines best discount brokers in India. These 5 Factors are:
- Stock Broking Experience
- Products & Services Offerings
- Brokerage & other Charges
- Research, Advisory & Stock Tips
- Quality of Trading Platforms
These factors have been discussed in detail our review of Best Sub broker in India
Now, Let us discuss the 5 features of Discount Broker.
While Full service brokers have always been in a higher position among investors, but a greater shift in technology have given rise to new kind of stock brokers who are called discount brokers. The discount brokers provide limited and restricted services and generally provide the services related to the trading platforms.
Why are traders shifting to Discount Brokers?
The business model of discount brokers is quite clear as they offer low brokerage, high speed and a faster platform for trading in stocks, commodities and currency. The market is penetrated with internet new handy gadgets that has made easier for investors to place trade orders offered by discount brokers. As discount brokers provide discounted brokerage the heavy volume professional traders make massive gain out of it, obviously the benefit is passed on to the consumer of the reduced cost.
Challenges Faced by Discount Brokers
Despite of so many advantages and how profitable it could be, at times it become necessary to avail the services provided by the full-service brokers. To become the Best Discount Broker it is necessary to gain the trust and reliability of the investors or traders, this is one of the challenge for the discount brokers as compared to full-service brokers.
Therefore, whenever you are planning to open an account keep your priorities and trading style first. There are so many brokers and so the competition is roaring only innovation and customer support will help the brokers to sail through the other. If you are an investor for long term then full-service broker will be great for you, but if you are a frequent trader then you must choose discount broker.