Benefits of trading with discount brokers

If you’re familiar with the differences between traditional and discount brokers, you’d likely understand that discount brokers are superior, in many terms, to traditional brokers. Especially in India, which is seeing a significant increase in new investors and traders. With discount brokers like Upstox delivering all your essential trading needs and more, it is important to understand in detail exactly how discount brokers deliver more bang for your commission-buck. 

Let’s dig through the details of discount broking in depth.

Who are discount brokers?

At the very core, the primary job of a discount broker is to receive ‘buy’ and ‘sell’ orders from the customers and execute them immediately. Discount brokers offer lower brokerage rates, rapid transaction times on stocks, commodities, and forex. Dissimilar to a traditional broker, they may not offer you in-depth trading advice or research reports on a particular stock. If you trust your investment decisions, a discount broker is always a better option as it offers you much-needed services at almost no cost.

Benefits of trading with discount brokers

Discount brokers are ideal for those investors who are looking to add more value to their trading, save while trading and learn to trust their individual judgments. With a low brokerage rate, discount brokers perfectly suit a new investor.

• Zero/Low Commissions: Discount brokers will carry your buy-sell orders at a very low commission rate.
• Powerful Analysis Tools: Discount brokers can deliver all the required charts and tools to help a trader conduct proper prior research. Again, Upstox offers more than 100 charts and other tools to smartly analyze your stocks and trade intelligently and independently. There’s always value to grab.
• Efficiency: Time is everything in the markets. With new age, fast platforms offered by secure and stable discount brokers, you can place and execute orders instantly.
• Ease of registration: Discount brokers are more likely to be aligned with new technologies - such as Aadhaar-based eKYC registrations that eliminate paperwork and reduce costs.

Future growth of the discount broking space

If we try to peek into the future of the discount broking industry, it’s easy to predict that prosperous times are in store. The stock markets of India - the standard gauge of our economy - seem to be on a continual bull-run whose end cannot be predicted yet. The Nifty has gone beyond the 10,000 mark. These are indicators of a prosperous market. And, new investors are trying to get themselves a slice of this pie.

The concept of discount broking will continue to evolve and get better with age. The digital economy is already spreading across different sectors. Expect more innovation in trading web platforms, enhancements in mobile trading services and a wider range of investment options in mutual funds, ETFs, options, forex, as well as an expanding group of products. Perhaps greater access to trading in global markets will soon be available too.