For a long time, stock investors never bothered about the brokerage costs. They would buy a stock and hold it long enough to make good returns. Obviously, if you play for a good catch, the brokerage hardly matters. But things have changed a lot in the last few years. Markets have become volatile and alpha has become hard to come by. Even fund managers are struggling to balance the brokerage-and-earning game. In a market like this, a discount broker bring in the much-needed relief. Here are the top reasons why it ticks the right boxes:
You focus on your Return On Investment than brokerage
At the outset, discount broking is all about lower costs. The case is opposite for a full-service broker. With them, you pay brokerage of 0.6% – 1% when you buy a stock. The taxes push the cost to nearly 1.5%. Sell your lot and it’s an addition of another 1.5%. On a total round cost of 3%, your Return On Investment (ROI) has already suffered. Discount brokers like Upstox charge you zero brokerage on delivery. So, all you pay is a very nominal statutory charge. In leveraged trades like intraday and F&O, low cost helps you churn capital, faster.
Your delivery trades have a big cost-advantage
Most discount brokers charge a far lower amount than full-service brokers. Companies like Upstox go one step ahead and offer free delivery! So, calculated, the cost advantage works to nearly 2%... which means your break-even comes in much faster than when you are trading with a full-service broker. And 2%, you will agree, is a big difference in returns.
You can trade on the go
A majority of the world has moved to the small screen. And services have moved on from being just mobile-versions to stand-alone apps. Discount brokers offer this via intuitive trading apps that give you all the convenience of desktop trading on a small screen; in fact even better. Right from placing orders to checking charts for trends, everything can be done on them. Apps like Upstox Pro also give you price alerts for delivery trades, which works great if your plan is to sell the scrip for a target price.
What you will not get?
Research and advisory support. Full service brokers do offer this as a justification. But if you look at it as a trader, it is better not to mix execution with advice. In fact, execution and advice coming from the same place is a clear conflict of interest. Low cost brokers give you the tools to screen stocks and traders are free to seek outside professional advice. And in the long run, this proves to be economical.
It is uncertain if Google may have the answer to all your other questions, but as far as discount broking is concerned, the answer is a sure, “yes”!
And if you are someone who wants to invest in the stock market while smartly saving on brokerage, then Upstox is your answer. One of India’s fastest-growing discount broker, we offer you seamless experience on both, the Web and Mobile. Our intuitive app, Upstox Pro has a 4.5 rating on the Play Store and offers you unique features that help you trade hassle-free... anywhere, anytime.