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

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.

Check the list of Stock broker famous in both the category –

Kotak Securities reviewZerodha reviewICICI Direct review
5paisa reviewIIFL reviewSharekhan review
Angel Broking reviewTop 10 stock broker in IndiaMotilal Oswal review
Edelweiss ReviewKarvy reviewHDFC Securities review
SBI Cap reviewUptox reviewSAS Online review
Trade Smart Online reviewTradejini reviewAngel Broking franchise
Kotak Securities franchiseICICI Direct franchiseSharekhan franchise
Motilal Oswal franchiseIIFL franchiseSMC franchise
Nirmal Bang franchiseSushil Finance franchiseProfitmart franchise

 

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