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Full Service Brokers are also known as Traditional Brokers. They provide full services to their clients & for that they charge comparatively high brokerage & fees from their clients.

Here, we would discuss about Full Service Stock Brokers and look at their functions, roles and responsibilities, brokerage charges, how fruitful it is to work with them, Pros and Cons of getting associated with them etc in detail.

List of Top Full Service Brokers in India

About Full Service Brokers

Let’s start the conversation about full service brokers with some of its example – India infoline, Motilal Oswal, ICICI Direct, Kotak Securities, Angel Broking etc.

These are some of the best full service brokers in the industry with high volume of trade on daily basis both on NSE & BSE. Now, why they are called full service broker because of the following reasons:

  1. Offline Presence – They have both online with brick & mortar model of working, they have huge offline presence in terms of Branches across the country.
  2. Research & Advisory – They performs a lot of research on various things related to stock market & provide their research work to the clients as an advisory or recommendation service.
  3. Personalised Service – They provides personalised service to each of their client where every client is provided with a dealer & relationship manager who helps them in each step of investment. These dealers & relationship managers act as a guide to the client and help them to achieve their goal of investment.

Other than these there are many services provided by full service brokers which discount brokers don’t provide. Full service brokers always charges high brokerage compared to discount brokers.

They provide quite a lot of services and hence they ask for more brokerage compared to discount brokers. This types of brokers usually charges on an average 3-5 times more brokerage compared to discount brokers. But they charge more because they provide huge number of extra services along with many value added services aswell.

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    What is Full Service Broker or Who is a Full Service Broker?

    Full Service Brokers

    As the name suggests, the Full Service Stock Broker, provides complete service to the investor right from assistance in trading to financial planning to research and advisory tips as well.

    The Full Service Broker is the traditional way of functioning of the Stock Brokers. In the yester years, only the rich were considered to be the ones investing in Shares and they would certainly need guidance and advice before investing their money.

    Hence, the Full Service Stock Brokers became their Stock Broker cum Financial planner who would help them understand which stocks are beneficial and which ones would be hazardous to own.

    A Full Service Stock Broker is a company that deals in Shares, is registered with multiple Stock Exchanges for trading and they facilitate trading transactions for customers.

    More about Full Service Brokers

    Apart from helping in seamless trading transactions, the Full Service Broker would go an extra mile and help the customer in other services like Financial Advising, Retirement planning, Research and analytics, Advisory services etc. This way they could retain their customers and try for more and more penetration in the market.

    The Full Service Broker also provides a range of Products and services to the customers and hence the customers are lured to stay invested through them.  Full Service Brokers register themselves with multiple Stock Exchanges like NSE, BSE, NSDL, MCDEX, CDSL etc.

    They do register with multiple Stock exchanges as per the segments that they trade in. For example, for equities, they would need to register in BSE or NSE or MSEI and for commodity they need to register with MCX and NCDEX.

    Most of the Full Service Brokers offer a range of products and services to their customers. They deal with the end-to-end customer life cycle with respect to his investment portfolio and wealth management. They are aligned with the investors on an individual basis to offer customized solutions.

    Services Provided by Full Service Brokers

    Full Service Brokers are known to go out of their way and help customers in their trading transactions. If you are a novice in Stock Broking, you surely would want to approach a Full Service Broker as he will assist you in everything.

    The services will include opening a Demat & Trading account, to providing you investment tips to actually doing the trade for you as well. Sure enough, they do charge a hefty fee for that as well, which is termed as the “Brokerage”.

    However, some of the Full Service Brokers provide value for money when it comes to brokerage as well. Which means they payback every penny of the brokerage charged. If they charge the money, they ensure that you get the desired services and value for the money spent.

    Services that Full Service Brokers offer:

    • Portfolio Advisory Services: Brokers offer customized advisory services to customers on what to invest, when and how much to invest. Not many people are equipped to understand the nuances of the Stock Market; hence they leverage from these advisory services so that they can grow their capital with minimum risk. Sometimes, the Stock Brokers also provide individual Relationship Managers to HNI customers (High Net worth Individuals) who manage their entire assets and investment portfolios.
    • Research & Analytics: Most of us don’t have the time and expertise to invest in doing research and check trending as to which stocks are moving towards profitability and which of them are going down. Hence, we rely a lot on our Stock Brokers. Most Brokers also have a dedicated Research & Analytics team whose job is to continuously cull out data of current market situation, compare and prepare trendings, and do complete analysis about the prospect and futility of various shares. They would generally share with their customers daily reports, annual reports and monthly reports too so that the customers can make calculative decisions.
    • Customer Service Desk: Many Full Service Brokers also deploy a customer service desk for their customers’ assistance and query resolution. Some of them offer 24X7 assistance while some others may provide it only during the working hours.
    • Financial Planning, Tax Consultations & Retirement Planning: Full Service brokers also offer various individual consultations to customers so that they can manage their investments with proper financial guidance. This is also done as many Full Service brokers also offer Insurance and Mutual Fund related products, hence these consultations become a channel of sales for their other products.

    Products Provided by Full Service Brokers

    Full Service Brokers offer an array of products to their customers including:

    • Equity
    • Derivatives
    • Commodity
    • Currency
    • Future
    • IPOs
    • Repository Services
    • Mutual funds
    • Insurance Products
    • Retirement Plans
    • Bonds and Debentures
    • Capital Gain Bonds
    • NCDs
    • Corporate FDs

    Most Full Service Brokers are registered with various Stock Exchanges for different segments of stocks. For Eg: for Commodity trading, they would need to register with NCDEX (National Commodities & Derivatives Exchange) and Currency, they would need to register with NSE or BSE or MSEI.

    They do that so as to offer the customers with maximum options under one umbrella so that the customer never thinks of switching over his Stock Broker for his trading needs.

    List of more Full Service Brokers

    Why open Demat & Trading account with Full Service broker?

    A Demat Account is a mandate before even deciding to start trading. Its like, you need to have a saving account before doing any banking transactions; similarly, for trading, one needs to have a Demat Account.

    The Stock Brokers have a provision of opening up a Demat Account with them and then they open up their Trading Account so that they can trade through that.

    Most Full Service Brokers will charge a nominal amount for the Demat Account opening; whereas some also offer this free of charge. Some Brokers also charge a yearly maintenance fee for the Demat Account.

    A trading account, on the other hand, is important for anyone to start trading with their shares using the Full Service broker’s trading portal. The Trading account is critical to be able to trade in your stocks and shares.

    Generally most of these brokers would charge you a nominal fee for opening up a trading account and some brokers also charge and annual maintenance fee for the same.

    Most Full Service Brokers offer multiple segment Trading options in the same platform, which means you can trade in Equity, Commodity,or Currency all at one go.

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      How to Open Demat & Trading Account with Full Service Broker?

      Demat Account & Trading Account opening tend to happen concurrently as both of them are interlinked. You will firs have to open the Demat account and deposit your exsiting shares there, and then you can start training once your Trading account is opened.

      The Broker will have a standard procedure to open up the Demat Account & the Trading Account. It’s a very simple procedure to do the same:

      Full Service Broker Account Opening Process

      • The first step is to identify which Full Service broker would you want to get associated with. You need to do a thorough research on broker’s charges, services offered, products offered by them, brokerage and other adhoc charges etc and then you can finalize on the Broker you would go with.
      • Most company’s have an online registration and application procedure enabled these days. You can register online and fill up the application form for the Trading as well as Demat account online itself.
      • Basic information like your full name, residential and office address, mobile and landline numbers and email id etc need to be filled in
      • These days websites also have an option of uploading your documents online. If that provision is available with your choice of broker, pls go ahead and upload all documents there.
      • When your details are received at the bank’s end, the bank will depute someone to call you and confirm whether you are genuinely interested in going ahead with the Trading and the Demat Account. The representative will also clarify for you if have any queries or concerns regarding any of the charges or fees.
      • Many companies also have to conduct an In-Person verification as a mandate by SEBI before opening up the Demat Account. When the in-person verification is not possible, they propose a video call or a skype call
      • Once all this is done, the total turnaround time taken for your Demat and training accounts to be opened will be maximum 4-5 working days.

      How do Full Service Broker make Money?

      As we are aware that one cannot buy or sell shares without a Stock Broker; you need to go via a broker to be able to trade. That’s why brokers charge the customers a brokerage fee for every trade.

      As compared to the Discount brokers, Full Service Brokers charge a considerable amount towards their brokerage as they also contribute a lot in the trading process.

      They are not someone who just hits the “Buy” or “Sell” button for you a d execute the trade; the full service brokers are the ones who would sit with you to frame your capital goals and work backwards in planning how to achieve them.

      They can be easily called the “Money Managers” who basically manage your money for you and handle your portfolio end-to-end.

      The Full Service Brokers  involve themselves in the customers’ financial planning, risk management and also wealth management activities and hence their charges are also higher as compared to the discount brokers.

      They charge a percentile of your shares value as their brokerage and that percentage can vary from segment to segment.

      For eg: an equity trading can be 0.03% whereas a Commodity trade can cost you 0.25% as well. They also have different brokerage charges for intraday, options and future trades as well.

      However, with the increasing competition amongst Stock brokers, even Full Service Brokers are revising their price plans as per the market trends.

      New Money Making Strategies of Full Services Brokers

      Many Stock Brokers have now started coming up with unlimited plans or per trade plans, which are much more cost effective plans for customers than the percentage brokerage.

      Hence lot of Brokers like Asit Mehta, JM Financial, Karvy Solutions, India Infoline and many more have now launched unlimited plans to cater to their customers’ needs.

      These are plans wherein one pays a fixed monthly or yearly subscription fee and enjoys unlimited free trade irrespective of the amount per trade or number of trades done. They also have launched per trade plans, wherein the customer needs to pay “X” amount per trade irrespective of the value or amount of trade.

      On an average, a Full Service Broker charges roughly Rs. 30-40 per trade; however the unlimited plans could be of varied ranges across Brokers.

      Does Full Service broker provides Leverage or Exposure?

      Leverage or exposure are a critical feature in the Stock Broking industry and most investors look for that broker who offers such benefits. It basically means that the customer has the permission to use funds more than he has deposited with the broker for his trades.

      There are occasions when the customer wants to pick up some shares, which are trending good, however the funds in bhis account are less as compared to the trade amount. This is when he can take a leverage or exposure option and borrow money from the Broker to carry on with the trade.

      On an average brokers like Asit Mehta, KIFS Securities, J M Financial, LKP Securities etc offer around 3-4 times exposure in Equity Delivery, upto  10-12 times in Equity Intraday and upto 8-10 times in Equity Futures. Hence the Leverage limit or the exposure limit also changes as per the segment and the type of deal.

      Full Service Brokers understand that to be relevant in the business and to sustain their position in the industry, this is a risk that they have to take.

      Find list of Full Service Brokers in India

      Are Full Service Brokers better for beginners?

      Certainly, Full Service Brokers are ideal for beginners who are novice in the field of Stock broking and have no clue about the Share market’s functioning.

      If you are starting off with Trading and want to play if safe under someone’s supervision or guidance, then a Full Service Broker would be your best bet.

      He will guide you on every step from Demat Account opening to doing your first trade, providing investment tips and sharing market research analysis as well.

      However, one must be cautious in contacting the right Full Service broker with a proven track record as some new entrants may just take undue advantage of your lack of knowledge in the field.

      Are Full Service Brokers better for Intraday Traders?

      Intraday trading is basically trading within a day. In Intraday, you can buy shares and sell them off in the same day before the Sensex closes.

      This is generally done to yield profit and churn money. However, you would need to have a more Leverage and exposure margin with your broker if you are gunning for good turnaround in Intraday trading.

      Moreover you need to also watch out for the brokerage or commissions that you would end up paying to your broker for your intraday trades.

      Generally, most Full Service Brokers charge brokerage on percentage of trade or on per trade basis. This would end up being extremely expensive for you incase  you trade through them.

      Therefore, it is advisable to look for free trade brokers or unlimited trade brokers so that you save up on your brokerage charges.

      Are Full Service Brokers better for Long Term Investors?

      If you are looking for a genuine advice on Long-term investments and good returns from them, then you can certainly cash on the Full Service Brokers.

      With their expertise and knowledge, they can certainly guide you with the best portfolio enhancement plans and maximize your capital.

      Also you can leverage on their research and analytics tools. Accordingly, you can take a calculative decision as to which Long term investment would you want to do.

      Advantages of choosing a Full Service Broker

      If you are a new entrant in the Stock Broking space & you need assistance, Full Service Broker is what you will need. Being the traditional form of Broking, they definitely have an edge over the modern times Discount brokers or online brokers.

      There are many advantages of the Full Service Brokers:

      • The first and foremost benefit of a Full Service Broker is their expertise that they provide their customers. When you know that you have an expert by your back, your decisions are stronger and without apprehension.
      • The individual attention that is provided to your portfolio makes sure that you money is in safe hands.
      • Their endless market research analysis and monitoring keeps them ahead of the game always. Full Service brokers spend good amount of time and money in analyzing industry movements. They also ensure that each of their customers are guided to benefit through their research.
      • Full Service Broker also provides other services like tax savings tips, retirement planning, life insurance benefits etc.

      Disadvantages of choosing a Full Service Broker

      While there could be many reasons why people choose Full Service Brokers; there are still a few elements that continue to ponder on people’s minds.

      There are a few disadvantages involved as well with their association:

      • Most Full Service Brokers charge a fortune for their services, which they boast of being world class. Surely, they do offer customized and individual services; however sometimes customers are reluctant due to the price point factor offered by them. If you compare them with a Discount Broker, their brokerage is much higher.
      • Although your Full Service Broker might guide you and advice you on where to invest, when and how much; however, it is advisable not to blindly trust them go ahead with your decision. They might be your financial planner, but they are ultimately Sales people and they get commission or brokerage. Hence always question your broker about his suggestion and only when you are convinced, go ahead with your trading decision.

      Full Service Broker Business Model Conclusion

      In this article, you will find everything that you would need to know about the Full Service Brokers. Know about their working strategies, brokerage charges, the pros and cons of working and much more.

      This would surely enable you to look at all aspects of being associated with them. Hence, you can take your decision accordingly.

      Full Service brokers FAQs

      Ques – Who are called Full-Service Brokers in stock market?

      Answer – Full service brokers are those that provide absolute and complete service to the investor right from when it comes to advising while trading to economic planning in the long run.

      Ques – Why open Demat & Trading account with Full-Service Brokers?

      Answer – A demat account is like a savings account where you can store all your shares intact and a trading account is significant in order to start a trade with the shares. Full service brokers charge an extremely feasible amount for opening both these accounts and offer immense segment trading options in the same platform which means you can trade in equity, commodity or currency all at once.

      Ques – Are Full-Service Brokers good for beginners?

      Answer – Full service brokers are extremely good for beginners who are new in this field and have no idea about share market’s  functioning. They guide you at each and every step right from the opening of a demat account to doing your first trade, so on and so forth.

      Ques – Are Full-Service Brokers good for intraday trading?

      Answer – Full service brokers charge brokerage on percentage of trade or on a per day basis. Having said that, while doing intraday trading, it will become extremely expensive for any trader while trading with a full service broker.

      Ques – Can we get free advisory services with Full-Service Brokers?

      Answer – Full service brokers provide free portfolio advisory services to the customers when it comes to investing. Sometimes the stock brokers also provide the customers with individual relationship managers to manage their entire portfolio.

      Ques – Which are the Top 5 Full-Service Brokers?

      Answer – The top 5 full service brokers are Angel Broking, ShareKhan, ICICI Direct, Motilal Oswal and Axis Direct. All of the broker houses have something unique to offer, and you can refer to each one of them, compare them thoroughly and then choose to invest through the broker, most compatible for you.

      Ques – What are the disadvantages of Full-Service Brokers?

      • Some of the full service brokers charge an immense amount for their services.
      • Although they provide world-class services, customers might get reluctant in paying them a hefty sum.
      • It is advisable to not trust your full service broker always when it comes to matters of decision about where to invest and when not to. This is because they might just be your financial planners but first of all they are sales people and they would always look for their own commission.

      Ques – Can I open online Demat account with Full-Service Brokers?

      Answer – You can definitely open a demat account with full service brokers. Having said that, you can also open a trading account with them. The broker has a pretty standard procedure to open them both.

      Ques – How Full-Service Brokers are better than discount brokers?

      • The number one benefit that a full service broker provides their customers is their expertise.
      • Then comes the exceedingly attentive individual advices provided to the customer’s
      • They also provide other leverages and services like retirement planning and life insurance benefits.

      Last but not the least is there a market research analysis that makes sure they are always one step ahead in this game.

      Ques – How to choose a full service broker for opening Demat account?

      Answer – Make sure that the full service broker you’re looking for provides an array of financial advising, research and analytics, among others. Not to forget, a range of services that would entice the customer to stay invested through them. Your full service broker must register themselves with plenty of stock exchanges like NSE, BSE, CDSL etc.

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