Discount Broking: Service to Client

Discount broking is a practice in which the broker provides fewer services to the clients and thus, charges fewer fees than the traditional brokers. It may also include only support services or expert advice where the investors are left to deal with their portfolio and securities alone without the help of brokers. 

The fee charged is lesser in comparison to the full-time services provided by the broker. This is because not everyone can afford a broker. So, they settle for taking minimal advices from them which is known as discount broking. Especially in a country like India, where the stock market participation is huge but the masses are not rich enough to afford a broker, discount broking is a common practice.

Discount broking does not involve personalized broking. The brokers may only give information regarding the market situation and the portfolio available under some specific budget groups but do not take out time for comprehensively analyzing your situation. This is successful only when you just need guidance in the direction of right investment and you have sufficient knowledge and experience to deal in the stock market without help. 

The discountbroking is relatively a new concept originated in the countries like India. It is all about do-it-yourself investing where only a push towards right investments is needed. It is not about the substitution of the investors by brokers in the stock market but about the leverage provided to the investors by the brokers which is secondary in nature.