Confused about the selection of right Broker? We are here to help you

 

First Understand the difference between the full Service broker and the discount broker

Full Service Brokers

 

A full service broker, or an online broker that offers a full service, is appropriately named because what they essentially do is provide a complete service to clients. When you open an account with a full service broker you will usually be allocated a relationship manager to look after you. Your relationship manager will then typically spend some time understanding your personal financial circumstances and what objectives you are trying to achieve through trading, and will then help you put together a suitable plan for reaching your goals.

You will probably get regular advice on what trades to make and when, and updates on your trading performance. Your relationship manager will carry out any transactions that you  instruct them to, and will also likely be able to provide you  with advice on  those transactions if requested.

The main advantages of using a full service broker are fairly self-explanatory. Having someone to guide you and offer advice can prove to be invaluable, particularly if you are relatively new to trading options or if you don’t have much confidence in making your own decisions. Their experience and expertise can be invaluable to you, and can accelerate the rate at which you learn and improve your own skills.

Full service brokers can also be a good choice if you don’t have much time to carry out research and  identify suitable trading opportunities. They can also be very useful in helping you fit your trades around your financial circumstances and personal objectives.

The main disadvantage of  using a full service broker is basically the costs involved. As you can  imagine, having a professional to give you advice that is based on years of experience and expertise doesn’t come cheap. The commission structure at full service brokers is typically higher than at discount brokers and there may well be a range of additional fees too. Bearing in mind that full service brokers are particularly useful for beginners, and many beginners start out trading options with relatively small sums of money, this can become an  issue.

It’s also worth noting that your relationship manager will possibly encourage you  to make more trades than you might choose to, in order to ensure that you pay plenty of commissions. However, this isn’t particularly common at reputable brokers. If you  stick to reputable options brokers and the extra costs associated with the full service aspect are manageable and worth it to you, then using a full service broker can certainly be a good choice.

 

Discount Brokers

 

Using a discount broker is somewhat more straightforward as there is much less involved. A discount online broker is basically just there to carry out your trades for you when you place your orders.

If you have an account with a discount broker you will probably not have any personal interaction with anyone, but you will have access to their trading platform from where you can place your options orders as required. The online broker will then automatically process those orders and execute the required transactions on your behalf. The best discount brokers make the process for this as simple and user friendly as possible.

The big advantage that discount options brokers have over full service brokers is the commission structure. The commissions at a discount broker will generally be noticeable lower than at a full service broker, as the broker is providing you with a far more basic service. There is likely to be less in the way of additional fees too, and a lot of discount brokers have very low minimum requirements for the size of deposits and trades – something that is important for traders that are working with small amounts of investment capital.

Many discount brokers offer further discounts on their commissions for traders that are making a lot of transactions, so these brokers can be a good choice for active traders that make a lot of trades on a daily basis.

Of course, when you are using a discount broker you are essentially on your own and you don’t have the added benefit of someone to offer you advice should you  require it. You will be entirely responsible for identifying your own trading opportunities and deciding whether or not your planned trades are a good fit for your financial circumstances and financial goals.

It’s worth pointing out, though, that many discount options brokers do have a selection of available tools that can be used to help with your research and trading. However, to use these tools you might have to pay additional fees or at least be regularly paying a decent amount in commissions. The bottom line is that if you are comfortable with making your own decisions without any assistance and/or paying low commissions is of particular importance to you, then discount options brokers are likely to be the best choice.

Conclusion

We have a solution for you refer the below section

Why Zerodha? 20 Simple reasons to trade with Zerodha

1. Rs 0 (FREE) for equity delivery.

  1. 2. For Trading Rs 20 or 0.01% whichever is lower per executed orderfor everything elseSame pricing for Equity, F&O, Currency, and Commodity across all exchange4. No upfront fee or turnover commitment5. No special penny stock brokerage or minimum contract charges6. Brokerage calculator to help you calculate all costs upfrontSUPPORT 7. Z-Connect, interactive blog and portal for all your queries8. Commission free mutual funds buy sell9. No Relationship Managers, no brokerage or sales targets, and definitely no forced trades10. Dedicated support team to ensure the fastest turnaround time for your queries via email or phone
 

Platform & Technology

11. Trading, charting, and analysis, all rolled into one next generation desktop platform Pi.

12. Minimilastic, intuitive, responsive web based trading platform Kite

13. Innovative and unique trading tools – SPAN Calculator, Bracket orders & Trailing Stoploss, Market Intel…

14. Amongst few brokerages with multi-datacenter disaster management infrastructure for safety, speed, and reliability.

15. Q & Quant, the next generation backoffice, reporting, and analytics suite

More …

16. 60-day-challenge : Trade profitably and get acknowledged with a full brokerage refund

17. Write, back-test and go live on technical analysis strategies for free

18. Average exchange margin utilization of 55% vs. industry average of 70%—lower risk

19. T+0 settlement on NSE and no additional margin on MCX—lowest overnight margin requirement

20. Debt free, profitable, and QOQ growth from day one
Zerodha is a sebi registered company started on 15th August 2010. Zerodha is one of the first discount brokerage house started online discount brokerage in India. Awarded by BSE D&B Brokerage award in 2014 & 2015, Startup Award 2016. Over 7 lakh plus active clients & emerged with advanced trading platforms like kite mobile, kite web, kite 3 web & pi. Also have various facilities Q, Quant, varsity for study etc.

 

For joining Zerodha please whatsapp / telegram on 8435700605 / 9406056301.  Joining through us will give you free technical educational updates, technical calls short term, medium term, investment ideas, help to develop stock portfolio, and mutual funds portfolio etc. and you will be added under secrete telegram group.

 

 


Why Tradesmartonline? Below Simple reasons to trade with Tradesmartonline

BIG VOLUME TRADERS

POWER PLAN Rs. 15

  • Rs. 15 per executed order, regardless of the size of the trade
  • Ideal for traders with less frequency but bigger trade size
  • Get intraday exposure of upto 30x on Equities, 7x on F&O, 3x on Currency and 6x on
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  • Margin against shares Learn more
  • No Minimum commitment

LOW VOLUME TRADERS

VALUE PLAN 0.007%

  • Brokerage: Intraday Cash, Futures, Currency, Commodities » 0.007%, Delivery » 0.07%, Options »
    Rs 7 per lot
  • Ideal for traders with lesser volume
  • Get intraday exposure of upto 30x on Equities, 7x on F&O, 3x on Currency and 6x on
    Commodities
  • Margin against shares Learn more
  • No Minimum commitment

For Opening Demat Account with tradesmartonline please whatsapp / telegram on 8435700605 / 9406056301.  Joining through us will give you free technical educational updates, technical calls short term, medium term, investment ideas, help to develop stock portfolio, and mutual funds portfolio etc. and you will be added under secrete telegram group.

 

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