In the trading business, there involves a fair share of risk. People are generally very hesitant and in the dark about the workings of stock market trading. It is volatile and even experts sometimes get their predictions wrong. In comes the stockbroker, a guy who is a mediator of sorts and who knows how the markets function better than anyone else. Majority of stockbrokers are listed in exchanges like BSE, NSE, MCX, NCDEX, etc. Depending on the person’s stock options, and the cost involved in trading they can choose among the top ones listed in exchanges. A stick broker charges something called the brokerage, which is a fee levied on the customer for executing an order and this charge varies from broker to broker. Some even offer free brokerage to encourage people to invest in the stock markets, a brokerage decides the points where one can enter and exit the market. In trading there is one basic rule that all brokers abide by, ‘buy less and sell more’ and trading in margins ensures that the risk on one’s side is lower and that of the broker is very high. Some factors that play a big role in trading are:

  • Software: a fast and smooth software experience ensures that one is not lagging behind and that he is buying and selling at the correct prices. The Good software also gives you faster speeds to help one navigate between deals quicker.
  • Customer support: a good customer support system ensure that the person does not remain in the dark and is not risked by high liquidity in the stock market.

Some major players in the stockbroking game are ShareKhan, ICICI direct, Kotak Securities, Wisdom Capital etc. Among these big players, there are two types of brokers, Major full-service stock brokers and discount stock brokers. Discount stock brokers offer a fixed brokerage fee and sometimes don’t even levy a fee to help investors with low capital start easy; although their rates are low, they don’t offer any investment advice. Some of the best discount brokers in India are Wisdom Capital, Trade Smart Online, Zerodha, Upstox, and SAMCO etc. Some advantages of choosing Discount broker over Major Full-service broker are:

  1. Excellent Customer Service: they provide very good customer service when the market volatility is high
  2. Lower Brokerage: their rates are fixed and very low, hence making trading very profitable.
  3. Best Online Trading Platform: discount brokers provide a good platform since they don’t have added features and it is streamlined for just trading.
  4. Higher Leverages or Intraday exposures: brokers offer intraday trading, i.e. buying and selling within the trading time, they also offer higher leverage when one needs to buy and sell on the same day.
  5. Best Mobile App for Stock Trading: many discount brokers offer a very good mobile platform solution which makes trading easier and can be done on the go.

Discount brokers offer a solution bar none to people who are willing to invest in stocks, without the downsides of huge brokerage fees and margins.