Types of stock brokers A stockbroker is licensed and regulated financial firm that facilitates buying and selling transactions in various financial instruments- stocks, derivatives, bonds, and IPOs for both retail and institutional investors. Basically, All financial market transactions have to be executed through a broker and they charge commission or brokerage charge for their services. There are two main types of stock brokers exist. Traditional Brokers Discount Brokers The Discount Brokers usually charge much less, while full-service broker or traditional broker can be very expensive but provides customized service. We advise investors and tradersto go through both discount and traditional brokers and get awareness of each of these types of brokers before opening an account. Here is the brief explanation that can help you in understanding the types of stock brokers .
Traditional Brokers Traditional stock brokers or full-service stock brokers offer a wide array of services and products, including financial and retirement planning, investing and tax advice, regular portfolio updates and also offer margins to purchase investment products on credit which will be subjected to necessary terms and conditions. Since traditional brokers offer personalized investment or trading recommendations and services, brokerages charges can be expensive. Take a look at some of the leading Traditional Brokerage firms that let customers invest and trade in stocks, futures, options, currencies, bonds in the Indian Stock Market. Traditional Brokers HDFC ICICI Securities Securities Share Khan Axis Securities Angel Broking Ratings A/C Opening Rs.975 Rs.999 Rs.750 Rs.900 Rs.600 Charges Demat AMC Rs.450 Rs.750 Rs.400 Rs.500 Rs.300 Charges Equity 0.3% - 0.5% 0.2% - 0.4% 0.25% - 0.5% 0.1% - 0.3% 0.25% - 0.5% Delivery Equity 0.025% - 0.05% 0.03% - 0.05% 0.02% - 0.04% 0.025% - 0.05% 0.01% - 0.03% Intraday Equity & 0.03% - 0.05% 0.03% - 0.05% 0.02% - 0.04% 0.025% - 0.05% 0.01% - 0.03% Currency Futures Equity & Rs.65-Rs.90 per Rs.50 - Rs 100 Rs.20 - Rs.50 per lot lot Rs.50 - Rs.100 per lot Rs.20 - Rs.50 per lot Currency lot Options NA NA 0.02% - 0.04% NA 0.01% - 0.03% Commodities Detailed Review Detailed Review Detailed Review Detailed Review Detailed Review Discount Brokers Discount stock brokers or online stock brokers usually allow clients to trade on their own with little or no interaction with a live broker. Discount brokers could be a better choice for the fee- conscious investor who prefers to do it by themselves. These brokerages will generally not offer
investment advice, although it’s common for a discount brokerage to offer free research and educational tools to help you make better-investing decisions. Since discount brokers offer fewer services and/or support, brokerages often come with lower fees than a traditional brokerage firm. Take a look at some of the leading Discount Brokeragefirms and their brokerage charges, account opening charges and annual maintenance charges. Upstox Fyers Zerodha 5Paisa Discount Brokers Ratings A/C Opening Samco Charges Demat AMC Rs.300 Rs.150 Nil Rs.650 Nil Charges Rs.300 Rs.150 Rs.400 0.2% or Rs.20 per Executed Order 0.02% or Rs.20 per Executed Order 0.02% or Rs.20 per Executed Order Rs.400 Rs.400 0.1% or Rs.20 per Executed Order 0.01% or Rs.20 per Executed Order 0.01% or Rs.20 per Executed Order Rs.10 per Executed Order Equity Delivery Nil Nil 0.01% or Rs.20 per Executed Order 0.01% or Rs.20 per Executed Order Rs.10 per Executed Order 0.01% or Rs.20 per Executed Order Equity Intraday Rs.10 per Executed Order Equity & 0.01% or Rs.20 per Executed Order Currency Futures Equity & Currency Options Rs.20 per Executed Order 0.01% or Rs.20 per Executed Order Detailed Review Rs.20 per Executed Order 0.02% or Rs.20 per Executed Order Detailed Review Rs.10 per Executed Order Rs.20 per Executed Order 0.01% or Rs.20 per Executed Order Detailed Review Rs.20 per Executed Order Rs.10 per Executed Order Detailed Review 0.01% or Rs.20 per Executed Order Commodities Detailed Review