The advantages along with risks you gain while availing a discount broker


Investment in financial markets has gone on to become a lot easy with the services of financial brokers.  A lot of people might argue choose the best discount broker in India. But when you avail their services you are going to gain some benefits along with risks.


The main advantage you are going to avail with this type of broker is that commissions are going to be considerably cheaper. When you are going to purchase stocks or securities on a regular basis you do not want to pay more than what you need. If you are working with a traditional broker you have no option rather than to deal with a large commission. On the total transaction, the fees are normally levied. With large commissions you are going to lose a major chunk of money from the profits you make. If you are an individual who is disciplined and wants to make money on a steady basis then you can do it at your own end. For example if you want to invest $ 100 every month, then with a traditional broker you need to pay $ 20 every month. What it means is that 20 % of investment goes to the broker.

When you avail the services of a discount broker the added advantage would be safety. If the broker charges you low commissions it means that they are making up things in bulk. The better discount brokers in the market are going to be the large brokers. It means that the investment you are considering to make is going to be safe, even if you are dealing with a small brokerage that is not known.


Though you might be able to save a lot of money with a discount broker you need to be well versed with some drawbacks as well. The main loophole is that they are going to leave all the investment decisions on to you. They are not bothered about what you buy or sell as long as you are buying or selling. In case if you need help you might not be able to get any such advice as you can expect a full time broker to provide you. In most cases they are going to provide you with a generic online trading platform for working and some generic information that is there on the website for each one of us to read. If you call them for help they are nowhere there to be seen to render any valuable investment advice you need.

With discount brokers you are able to give up some features or services that you can avail from a traditional broker. You are not in a position to invest in as much securities as possible that is possible in case of a discount broker. Most of them are going to focus on the popular type of investments. This is going to restrict your options and in the long run leading to a decrease on the earning front.

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