Once you have decided to trade in the stock market the onus would be which type of broker to choose in the first place. Generally in the market they are two types of brokers, discount brokers and the full time brokers, as both of them do have their own set of pros along with cons.
The difference
A full time service brokers goes on to provide complete service to the clients in terms of investment advice and a discount broker simply executes trades on your behalf. The former is an example of a full time broker whereas the latter serves as a testimony of a discount broker.
You can apply these differences, but the evolution of online trading has changed the landscape of online trading in India. In fact the difference between both the type of brokers has somewhat gone on to become blurred. With online options it is easy to be choosing the type of services that you want and you will be charged accordingly.
The task is really difficult to label a broker as a full time or a discount broker. Eventually it would all boil down to the point on what the customer wants. Yes this means that you do have the decision at your end to choose which is the type of broker you want, be it a full time or a discount broker.
The full time brokers
Pretty much as the name suggests a full time broker provides a complete array of service to the clients. The moment you end up opening an account with a full time broker they are going to allocate an account manager to you. These managers are going to spend some time in understanding your financial requirements and figure out the kind of objectives you are planning to achieve by trading. Then they are going to devise a suitable plan that is going to help you achieve your goals faster.
You are going to gain an advice on what trades to be placed as the account manager is going to conduct the transactions you instruct them to do so. Such brokers work out to be a viable option once you do not have the time to conduct research at your end.
Discount brokers
This works in complete contrast to what the full time service broker operates. They are simple going to execute the transactions on your behalf and for that they might charge a rate of commission. Even the best discount broker in India might provide you with a platform where you can gain access to online research tools.
Conclusion From our discussion till date the difference between both the types of brokers are evident. But as pointed out the online options do not fall under any and to differentiate between both the types of brokers seems to be a difficult task. Yes to a certain extent it would be really beneficial to understand on how both the type of brokers operate and what are the services on offer.