Discount Brokers vs Full service Brokers in India
Any transaction in the share market, be it buy or sell, requires a broker’s intervention who works as an agent between the market and market participants. Security and Exchange Board of India popularly known SEBI is the agency that regulates Stockbrokers and they need to register themselves with SEBI. There are a lot of Share brokers who have Pan India Presence and they offer varied range plan and product to place them in the top 10 stock brokers in India.
These brokers are broadly divided into 2 segments, One "Full-Service brokers or Traditional Brokers" and the second one is "Discount brokers".
Full-Service Brokers: Traditional “full-service” brokers do more than just facilitate the buying and selling of a stock or bond. These brokers tend to offer a wide array of services and products, including financial and retirement planning, advisory and trading facilities in stocks, commodities, and currencies, investing and tax advice, and regular portfolio updates. Full-service brokers generally have a lot of offices and branches across the country, where clients can visit in case of any help required.
Discount Brokers: These brokers came into existence as a result of an increased preference for the Internet. A discount or online brokerage could be a better choice for Investors who are fee-conscious and prefers to go it alone without expert advice. These brokerages will generally not offer investment advice. With a discount brokerage, you can either execute a trade online automatically through a computerized trading system or call in your order with a broker over the phone—although the latter option will likely cost you more.
Comparison between Full-Service Brokers v/s Discount Brokers:
| Factors | Full-Service Brokers | Discount Brokers |
|---|---|---|
|
Service |
Advisory for shares, mutual funds, bonds, currencies, commodities etc |
Provides trading platform |
|
Brokerage |
Average daily brokerage is 0.3%-0.5% per trade |
Charge as low as Rs 10/trade, irrespective of the order value |
|
Presence |
Operates through a number of branches |
Normally do not have much branches and provide online services |
|
Suitable For |
An investor and Trader who is new to the stock market and seek hand-holding along with trading tools. |
For an Investor/Trader who is well versed with Stock market and can carry out own research |
|
Deciding Parameters |
a) Brokerage & Other Charges |
a) Brokerage |
Below is the list of Top 10 Discount Brokers in India based on the number of active clients at NSE as of 30th June 2019.
| Rank | Name of Share Broker | Active Clients (30th June 2019) | Active Clients (31st Dec 2018) | % Growth in 6month |
|---|---|---|---|---|
| 1 | ZERODHA | 979241 | 847016 | 16% |
| 2 | Upstox (RKSV) | 186456 | 81166 | 130% |
| 3 | 5PAISA | 147499 | 89996 | 64% |
| 4 | SAMCO | 41354 | 38849 | 6% |
| 5 | My Value Trade | 39002 | 44043 | -11% |
| 6 | TRADE SMART ONLINE | 22085 | 22091 | 0.0% |
| 7 | SAS Online | 12402 | 12637 | -2% |
| 8 | R K GLOBAL | 8290 | 9236 | -10% |
| 9 | FYERS SECURITIES | 7099 | 3979 | 78% |
| 10 | TRADEJINI | 5013 | 5013 | 0% |
Below is the list of Top 10 Full-Service brokers in India based on the number of active clients at NSE as of 30th June 2019.
| Rank | Name of Full-Share Broker | Active Clients (30th June 2019) | Active Clients (31st Dec 2018) | % Growth in 6month |
|---|---|---|---|---|
| 1 | ICICI SECURITIES LIMITED | 878884 | 844853 | 4% |
| 2 | HDFC SECURITIES LTD. | 650114 | 674495 | -4% |
| 3 | SHAREKHAN LTD. | 504796 | 548873 | -8% |
| 4 | KOTAK SECURITIES LTD. | 443461 | 409619 | 8% |
| 5 | Angel One LIMITED | 426716 | 415572 | 3% |
| 6 | AXIS SECURITIES LIMITED | 389512 | 416707 | -7% |
| 7 | MOTILAL OSWAL FINANCIAL SERVICES LIMITED | 326011 | 328145 | -1% |
| 8 | KARVY STOCK BROKING LTD. | 265798 | 270521 | -2% |
| 9 | SBICAP SECURITIES LIMITED | 210892 | 210073 | 0.4% |
| 10 | IIFL SECURITIES LIMITED | 203702 | 232344 | -12% |
Final word
When it comes to choosing a brokerage, whether it’s a Full-Service Broker or a Discount Broker, there is no one perfect choice for every investor. It would really depend on your individual needs and preferences, weighing the costs versus the benefits of each broker, and carefully comparing the level of services and features offered.
User Reviews
Post New Message
0 Comments