Everyone wishes to be rich and prosperous, but no one wants to work too hard in order to be extra rich. Everyone wants a shortcut for having their dream lavish lifestyle. Earlier it was very difficult to achieve so but today, in the 21st century, wealth can be made at our fingertips itself with just a few clicks using shares and debentures of different companies.
A share is a unit of capital or units of ownership in a corporation that leads to an equitable distribution of profit, in the form of dividends. This brings us to the concept of share market or stock market which is a source for companies to raise funds and for investors to increase their wealth by buying a part of ownership in growing businesses. However getting into the share market can be quite tricky and result in more losses than profit, which requires a broker to make everything simpler.
Brokers are middlemen who buy and sell shares on behalf of others, or they arrange and negotiate on behalf of companies and investors. A stockbroker is an agent who charges a commission for buying and selling of company shares. Prior to the internet era, only the wealthy people could afford to hire brokers but now with the emergence of technology, there is an abundance of brokers available online, discount brokers being one of them.
A discount broker is a stock broker who carries out the operation of purchase and sale of assets or shares at minimum or reduced commission rate. Although the discount brokers do not provide any sort of personal consultancies, tax planning, advice and other planning services for clients, but they execute orders on cheaper costs by offering lower fees. While choosing a discount broker, it is very necessary to do your research beforehand but they give us other advantages such as
- The primary benefit of using discount brokers is the low cost due to their low commission rate.
- Discount brokers have no interest in selling or promoting any particular company’s shares as they do not offer any advice, hence their service is unbiased.
- Some discount brokers can give us access to information, particularly the well established ones offer extensive educational or research material at their websites or offices.
- A variety of plans are offered like monthly brokerage plan, per trade plan etc and the client can select the most suitable one.
- Such brokers are beneficial for intraday traders.
- Discount brokers are very transparent in their costs such as margin calculator, trade confirmation and brokerage calculator.
- Using scanned Adhar card and some other necessary details, discount brokers offer paperless account opening which saves time and effort.
Doubtlessly, online discount brokers are given more preference than the traditional ones as they not only provide free investment zone but also render all the required services. It helps in creating a large platform for all kind of traders. It is best to choose zero brokerage stock companies which helps in saving a lot on brokerage part an money is spent only in investing and trading.