With Discount Brokers – Why pay more

If you are new to the stock market, then you should know how to make investment in the market. With discount brokers – why pay more? Yes, there are many discount brokers who could show you the right direction and make you know more about the market and that too in a low cost. So, you need not have to burn a hole in the pocket to know more about the market. Let us have a look about the discount broker and also we will discuss about the types of firms.

About discount brokers

When we say, “discount brokers”, we mean brokers who offer an execution service in the Indian stock market and where you can tell them to buy or sell or whatever and they would do exactly the things you have requested but nothing more than that. There are brokers that provide you with monthly newsletters and that too with recommendations. But you ‘will find some brokers who never trade futures and what’s more, they do not even talk to a futures broker in the stock market. Then there are brokers who would not let you buy, “no-load” mutual funds for commissions which is lesser than 0.5%

Choosing the right broker

In today’s world, you will find many brokers who are very clever and eats up all your money by making false promises and at the end of the day you are bankrupt. So it is very important that you choose your broker very carefully so that you do not fall prey to the wrong person and let your cash go away in the wrong place.

Types of firms

There are different types of firms — Full service discount is one where it provides service from a full-service broker at about half the cost. Then there is “discount” that do not have any local branch offices or research departments. In this case, they charge commission of about one-third the rice of a full service broker. Then there is “deep discount” that executes only stock and option trades.

So you do not have to pay more because with discount brokers – why pay more?

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