Benefits of Opening Demat Account with Full Service Stock Brokers

Firstly, we must see the difference between Full-service and Discount brokers,

Full - Service Broker: Provides all finance-related services under one roof.

Discount Broker: Provides a trading platform.

Below are the key differences between Full - Service Broker and Discount Broker,

 

Full-Service Broker

Discount Broker

Brokerage

Typically charges a percentage of trade value as brokerage. May offer lower percentages to high volume traders. 

Discount as in Flat fee for a trade as Brokerage.

Brokerage Charges

0.25% - 0.75% (Approximate)

Generally ₹10- ₹20 per order.

Services

Broking Services, Research, Wealth Management, PMS, Depository services etc.

Trading Platform.

Suitable for

Traders and Investors who’d like specialized research or guidance regarding investments.

Good for traders who use their own research for trading. 

Physical Presence

Anytime and anywhere motto. Available in multiple locations.

Zero branch offices.

Customer service

Email/Call/Branch Servicing/Doorstep servicing etc.

Offer dedicated RMs for clients.

Online services email/chat/phone

No RM services.

Examples

Choice Broking, Motilal Oswal, ICICI Direct, Kotak securities etc

Zerodha, Upstox  etc.

Research

In-House research 

Tie-ups with 3rd party research providers like Morningstar etc

With the differences out of the way, we can move onto the benefits offered by a full-service broker,

Full-Service Brokers offer value-added services like,

  • Research on the various sector and stock done by in-house experts
  • Personalized Advisory with reliable suggestions to invest in a wide variety of asset classes including portfolio management services 
  • Consolidated view of all your investments and portfolio reviews

Other Benefits like,

  1. Enjoys huge brand loyalty
  2. Gained Investor’s Trust
  3. Dedicated Manager to fulfill your needs personally
  4. Backed by years of reliable experience
  5. Instantaneous Grievance Redressal and a team to do that
  6. Offline Branch Support
  7. Education First Approach
  8. Wide Product Portfolio
  9. Robust Trading Platforms
  10. No failure of the system unlike a Discount broker
  11. Research Reports and Recommendations
  12. Call & Trade Facility

With the above advantages and benefits, a full-service broker with a commitment to serving your best interests can reduce a lot of hassle, save a lot of time, energy, and stress. The team continuously tries to boost your portfolio’s earnings since their job is to research companies, keep the finger on the pulse of the stock market, and earn the clients’ money, for which one may not have the time, skill, or interest to do it by themselves.

A good full-service broker analyses your financial situation and helps develop a customized financial plan. These plans can be all-inclusive which includes investing in the stock market, developing a budget or savings plan to life insurance, and tax-saving strategies. This is the major benefit of a full-service broker.

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