The Positive and Negatives Of Using A Discount Broker
You may have opted for the stocks you want to invest, as you are in a position to craft your own investment decisions. Just you need a convenient option to buy or sell stocks. So opt for the top 10 discount brokers in India. They are not going to provide any premium services or roll out discounts- Just they are going to provide you with the basics in order to undertake a transaction.
Pretty much as the name suggests a discount broker is cheaper to avail than a full time broker. Pretty much as you are engaging a full time broker you end up advising yourself. When it is a full time broker you can gain valuable advice from websites, investment advisors and even hot lines. A considerable degree of costs can be saved apart from when you are availing a full time broker.
In case if you are planning to work with a discount broker you need to figure out your personal needs and goals. The onus is to conduct a proper research to enhance better stock relations and the final outcome is dependent on you whatever your decision is. Till this point of time as a regular broker you had to choose from a couple of options. They can be classified into the internet and conventional discount brokers. In some ways both of them can be related to each other. By industry consolidation, the conventional brokers as of now have their own websites and on the other side the internet based brokers are relying on face to face and internet based services.
The benefits you can expect from a discount broker
As compared to the full time brokers, a discount broker offers a wide variety of benefits
- Low cost- the main reason why low cost arises is because of lower commissions, and this works out to be the major benefit of availing services of a discount broker
- Unbiased service- as no form of advice is offered investor brokers do not have any vested interest in selling out a particular stock to suit your requirements
- Timely information- the reputable brokers in the market provide access to a wide range of educational materials on their websites and even at their offices.
Things to watch out for
To a certain extent in order to do business with a discount broker, there are some flipsides as well.
- No guidance- as you are availing the services of a discount broker, you do not expect any form of guidance, but a broker has to clear this fact straight away. In case if you happen to be a knowledgeable investor, the lack of knowledge is considered to be a positive thing.
- Hidden fees- discount brokers may claim that they charge low commissions but this does not pose to be the only way to make money. These brokers go on to charge extra charges for a host of services.
To conclude if you are considering the services of an internet-based firm figure out the customer service capability.