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Pros and Cons of a Discount Broker

As the name suggests, discount brokers are cost-effective as compared to full-time brokers. Discount brokers do not fiddle with your equity trading decisions, youu2019re advising yourself from your daily market research and grasping as much knowledge as you can. <br>This presentation will tell you whether a discount broker(https://www.edelweiss.in/open-trading-account-online) is right for you.

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Pros and Cons of a Discount Broker

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  1. Pros and cons of a discount broker

  2. Introduction As the name suggests, discount brokers are cost-effective as compared to full-time brokers. Discount brokers do not fiddle with your equity trading decisions, you’re advising yourself from your daily market research and grasping as much knowledge as you can. And because discount brokers do not offer you any premium services, you end up saving a lot of money that a full-service broker would otherwise levy on you.

  3. Pros and cons of a discount broker Pros: •As stated earlier, cost-effective fees are the biggest advantage of hiring a discount broker. Lower costing means lower commissions and it’s the primary and most important benefit of opting for discount brokers. •Secondly, discount brokers offer unbiased service. That’s because they don’t offer any trading advice, and hence have no vested interest in trying to sell you any particular stock. •Third biggest advantage of having discount brokers is that they provide traders access to information. Though discount brokers do not offer any advice they offer an abundance of latest updates about the stock market and trending trades on their website which is a boon for traders of all categories.

  4. Pros and cons of a discount broker Cons: •As mentioned earlier, discount brokers do not offer even a penny worth’s advice to its customers leaving investors responsible for whatever transactions they carry in the equity market. For an investor who is pretty new to the equity market, trading without guidance can be a risky business. •Investors need to thoroughly read and understand the fee structure because there can be hidden charges involved. Discount brokers may boast about their lower commissions, but they can charge you more in services like issuing a stock certificate or mailing a statement.

  5. conclusion • For a seasoned investor, a discount broker can do charms. As they offer lower fees compared to full-time brokers. Also, seasoned investors do not need broker advice as they have been in the stock market game for a long time and understands how to pick their trades. • But for a ‘know-nothing’ investor who is completely new to the equity market, hiring a discount broker doesn’t make sense. That’s because a new investor needs guidance and extensive advice while performing stock trade. They need time to understand the tricks and trades of the stock market and only a full-time broker provides this service. So when picking up a broker, check out what your requirements are before making the final call.

  6. THANK YOU

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