Choosing the right discount broker will save money on trades

discount broker

Of all the many ways of  investing your wealth, investing it in the stock market can be rewardable yet risky. You probably have a saving account where the bank is likely to pay you an interest which is so little that you’ll consider you’re self as a bush leaguer. Now you are wondering where should I invest to get  the most benefit out of my money? Try investing it in the stock market! but why in stocks? Answers pretty simple “rapid remarkable returns”.

Why invest in India?

A developing country like India is a platform for foreign investors and companies. Already  developed countries like USA UK AND CHINA all have a particular drawback, the companies there have reached there full potential it means that they have grown so much that there is very little space for expansion. Whereas in India you get cheap labour , good gdp, high exports, unlimited resources, high consumption which makes India the worlds best investment hub.

How the stock prices moves

Consider the basic demand and supply. If there is more demand (i.e more number of buyers the stock prices will rise and when the supply exceeds the buyers then the stock prices drop down.) Hence the prices at which stocks were pinched are irrelevant. The prices fluctuate based on the companies performance and the profit/losses it makes overtime. As an investor you should be aware of the fact whether the company is able to make profit on the long run and it that wont collapse in the short term. That’s why it is really important to get in  touch with stock brokers, you can pick the best discount brokers as well as conventional brokers from, they will assist you and provide you the best trading services.

How to pick the right stock

Your gut feeling– Invest in the companies you have always heard about whose products you use and have faith in them. Goggle their stock and invest if you feel they are on the right track.

News channel– the business news channel will keep you updated with the latest stock picks every now and then so that you can choose wisely.

Internet site– traders can surf internet sites to determine the stock movement. Websites  like is instrumental in keeping track of the activities going on in the market. You can get their technical analysis : which is a widely used stock movement study.

Role of stock brokers

Brokers are agents who are trained  and certified to participate in stock market, they don’t own the securities but does service for the investor, they act as a bridge between the buyer and seller and in return they charge a fee from the whole transaction.

Why opt for a Discount broker

Usually when it comes to full time brokers they charge a percentage for the entire trade value where as discount brokers charge’s a fixed amount irrespective of the number of trades the investor conducts. You should opt for a discount broker if the trading volume is high.

The discount broker does the same job as that of a stock broker but for a minimal fee. The charges per trade is fixed irrespective of the size of it. The charges are usually low and range from Rs 9 to Rs 20. Making the correct choice from the list of Discount Broker is vital as there are many stock brokers available , you as an investor have to choose best discount brokers wisely according to your requirements.

Drawbacks of discount brokers

You probably wont call them drawbacks rather differences. the primary one is that they don’t provide advisory services, it can be looked in both ways, its only if you solely depend upon them that it becomes a drawback and also if you call them, the same person always doesn’t answer then again after everything has become online now it doesn’t much.

Bottom line the discount brokers are better than the conventional ones as they let you make money the way you want to do it.

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