Full Service Broker vs Discount Broker

Before getting into the brawl of Full Service Broker vs Discount Broker, let us understand what are the various types of stock brokers are present in India.

Full Service Broker vs Discount Broker comparison

Full-service Broker

Full Service Broker vs Discount BrokerFull service brokers offer you several services along with buying & selling of shares, options of research and advice as well as retirement and tax planning. They mainly offer stocks, annuities, bonds, derivatives and insurance. Besides an exchange, they charge considerably higher fees.

Among the full-service brokers, there are several bank subsidiaries that will offer you a 3-in-1 account, that is, a savings bank account, a Demat account and an online trading account. Examples are ICICI Direct, HDFC Securities, Kotak Securities, etc. Full-service brokers solicit business and are paid mostly through commissions. This also means they get compensated not according to how well your portfolio performs with time, but by how often you trade. Other full-service brokers provide all these facilities except a savings account. Some renowned brokerage houses are Angel Broking, Sharekhan, India Infoline, Motilal Oswal, Edelweiss & others.

Discount Brokers

They offer no-frill stock broking accounts. They only provide the necessary trading facility at the least possible cost. Discount brokers are a recent trend in India and are catching up fast.

Discount brokerages make money by doing business in greater volume, competing mostly on price and “reliability” of the service: Whoever has the lowest prices and the best service gets the most trades in the brokerage business.

Discount broker charges are much lower than that of Full-service brokers. Among the most prominent discount brokers in India are: RKSV/Upstox , Zerodha, 5Paisa, SAS Online & others.

Let’s see how these stock broking business type fares in following parameters

Full Service Broker vs Discount Broker – Research & Advisory

Full Service brokers will always be rated high compared to Discount Brokers when it comes to all types of Research & Advisory. Check here –

ReportsFull Service BrokersDiscount Broker
Fundamental ReportsYesNo
Research ReportsYesNo
Company ReportsYesNo
Annual ReportsYesNo
Company Stock ReviewYesNo
Free Stock TipsYesNo
IPO ReportsYesNo
Top PicksYesNo
Daily Market ReviewYesNo

 

Full Service Broker vs Discount Broker – Brokerage Charges & Fees

Discount broker will always win this race against full service broker. Lets see the comparison –

Brokerage Charge & FeesFull Service BrokersDiscount Broker
Equity Delivery TradingHighLow
Equity Intraday TradingHighLow
Commodity Options TradingHighLow
Equity Futures TradingHighLow
Equity Options TradingHighLow
Currency Futures TradingHighLow
Currency Options TradingHighLow
Demat AMC ChargesHighLow
Trading AMC ChargesYesYes
Margin FeesYesNo

Open Demat Account in just 5 minute

    Fill Your Details Here
    1. Open Demat Account

    Full Service Broker vs Discount Broker – Products & Service Offered

    This is one area where both the broker types are quite competent, Full service brokers are marginally ahead compared to discount brokers here.

    Products & ServiceFull Service BrokersDiscount Broker
    Demat ServicesYesYes
    Trading ServicesYesYes
    3 in 1 AccountYesNo
    Intraday ServicesYesYes
    IPO ServicesYesYes
    Stock TipsYesNo
    PMSYesNo
    Margin FundingYesNo
    Equity TradingYesYes
    Commodity TradingYesNo
    Currency TradingYesNo
    OptionsYesYes
    FuturesYesYes

    Full Service Broker vs Discount Broker – Trading Platform Comparison

    In comparison of trading platform, both types of brokers are equally competitive. Let’s check their review

    Trading PlatformsFull Service BrokersDiscount Broker
    Desktop Platform – WindowsYesYes
    Desktop Platform – MacYesYes
    Desktop Browser PlatformYesYes
    Mobile Site PlatformYesYes
    Android App PlatformYesYes
    iOS App PlatformYesYes
    Windows App PlatformYesYes
    Other Mobile OS PlatformYesYes
    Real time UpdatesYesYes
    Portfolio DetailsYesYes
    Online MF BuyYesYes
    News FlashYesYes
    Research ReportsYesYes
    Easy InstallationYesYes
    Global IndicesYesYes
    Stock TipsYesYes
    Personalized AdvisoryYesYes
    Interactive ChartsYesYes
    Live MarketsYesYes
    SMS AlertsYesYes
    Email AlertsYesYes
    Multi Account ManagementYesYes

    Full Service Broker vs Discount Brokers – Stock broking experience

    In this category, Full Service brokers will beat discount brokers very easily. Full service brokers have been in existence since ages & discount brokers are a new trend. But Discount broking firms are growing at a very fast rate as they charges very less brokerage, they are attracting traders towards them & engaging with them significantly.

    Open Demat Account in just 5 minute

      Fill Your Details Here
      1. Open Demat Account

      List of all Full-Service Brokers in India –

      Angel Broking , Motilal Oswal , Kotak Securities , HDFC Securities , Sharekhan , India Infoline / IIFL , ICICI Direct , Edelweiss , Karvy , SBI Cap Securities , Geogit BNP Paribas , Anand Rathi , Religare Securities , Indiabulls Ventures , Just Trade , Ventura Securities , Aditya Birla Money , Axis Direct , SMC Global , GEPL Capital , IDBI Direct , GCL Securities , Arihant Capital , Mangal Keshav , MasterTrust , Networth Direct , Reliance Securities , Sushil Finance , LSE Securities

      List of all Discount Brokers in India –

      Zerodha , 5Paisa , Upstox / RKSV , Samco , SAS Online , Wisdom Capital , Trade Smart Online , Tradejini , Beeline Broking , Compositedge , RK Global , Achiievers Equities , Bonanza Portfolio , MDirect , TradingBells , EzWealth

      List of Stock Broking Franchise in India –

      Angel Broking Franchise , Kotak Securities Franchise , ICICI Direct Franchise , Sharekhan Franchise , Motilal Oswal Franchise , IIFL Franchise / India Infoline Franchise , SMC Franchise , Nirmal Bang Franchise , Sushil Finance Franchise , Profitmart Franchise

      Important Blog Posts –

      Top 10 Stock Brokers in India , Best Stock Broker in India , Top 10 Intraday Trading Brokers in India , Top 10 Sub Broker Partner in India , Best Demat Account in India , Full Service Broker vs Discount Broker in India , 10 Best Practices of Share Market Investment , Mutual Fund vs Real Estate Investment

      2 thoughts on “Full Service Broker vs Discount Broker

      • July 20, 2020 at 19:50
        Permalink

        If I have demat account in Aditya Birla Mony and zerodha
        And my shares are in depostry CDSL through Aditya Birla,
        Can I sell shares through zerodha

        Reply

      Leave a Reply

      Your email address will not be published. Required fields are marked *

      Get 90% Discount on Brokerage Now! Open Demat Account
      ×

      Share your details & Become Sub Broker Now!

        1. Become Sub Broker

        Offer valid for limited time.

        ×

        Share your details & Open Demat A/C Now!

          1. Open Demat Account

          Offer valid for limited time.

          ×

          Share your details & Get IPO Allotment Now!

            1. Invest in IPO

            Offer valid for limited time.

            ×

            Share your details & Invest in PMS Now!

              1. Invest in PMS / PCG

              Offer valid for limited time.