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 –

Reports Full Service Brokers Discount Broker
Fundamental Reports Yes No
Research Reports Yes No
Company Reports Yes No
Annual Reports Yes No
Company Stock Review Yes No
Free Stock Tips Yes No
IPO Reports Yes No
Top Picks Yes No
Daily Market Review Yes No

 

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 & Fees Full Service Brokers Discount Broker
Equity Delivery Trading High Low
Equity Intraday Trading High Low
Commodity Options Trading High Low
Equity Futures Trading High Low
Equity Options Trading High Low
Currency Futures Trading High Low
Currency Options Trading High Low
Demat AMC Charges High Low
Trading AMC Charges Yes Yes
Margin Fees Yes No

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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 & Service Full Service Brokers Discount Broker
Demat Services Yes Yes
Trading Services Yes Yes
3 in 1 Account Yes No
Intraday Services Yes Yes
IPO Services Yes Yes
Stock Tips Yes No
PMS Yes No
Margin Funding Yes No
Equity Trading Yes Yes
Commodity Trading Yes No
Currency Trading Yes No
Options Yes Yes
Futures Yes Yes

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 Platforms Full Service Brokers Discount Broker
Desktop Platform – Windows Yes Yes
Desktop Platform – Mac Yes Yes
Desktop Browser Platform Yes Yes
Mobile Site Platform Yes Yes
Android App Platform Yes Yes
iOS App Platform Yes Yes
Windows App Platform Yes Yes
Other Mobile OS Platform Yes Yes
Real time Updates Yes Yes
Portfolio Details Yes Yes
Online MF Buy Yes Yes
News Flash Yes Yes
Research Reports Yes Yes
Easy Installation Yes Yes
Global Indices Yes Yes
Stock Tips Yes Yes
Personalized Advisory Yes Yes
Interactive Charts Yes Yes
Live Markets Yes Yes
SMS Alerts Yes Yes
Email Alerts Yes Yes
Multi Account Management Yes Yes

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.

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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 , Marwadi Group , 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

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