To invest in the stock market entails the support of a stockbroker to carry out your instructions although you are not of the opinion to seek their advice. Most of the investors and traders have forgotten the times when they had no option of the sort of stockbroker to employ. There were only full-service brokers available in the market as they controlled the industry and their commissions, whatever, were taken as standard. However, with the change of time and technology, the scenario has changed now.
It was late many years back when full-service brokers were no more in control of the financial market and lost it to the discount brokers because the latter realized minimum fees and commission and spread their hand all over the market. Since the advent of the discount brokers, the trading efficiency has increased by manifolds by opening up more avenues through the internet. All the investors who trade individually now can have easy access to huge information as was not possible before. Now the Investors enjoy a broad option regarding the kind of broker they desire to engage from totally low order taker to the one who is money manager to supervise the decisions.
Below are given four main types of brokers that can provide you a hint concerning what option is their so that you can choose for yourself the wide array of services offered to you.
Discount broker with assistance
The traditional discount/online broker is the order taker
What they do is that they take your instructions by way of phone or online. If you contact them by phone, you generally may note that they don’t beat around the bush and talk brief is good. You cannot expect any assistance from them until and unless you talk about technical purview concerning the order. They will never aid you in choosing a stock or advice you to sell at the proper time.
Discount or Online through Assistance Broker
This kind of brokerage proffers some assistance to their clients that can be said to be short of full-service brokerage but do not let you do alone because they help you. Their online websites normally offer more research as compared to straight discount brokers and can provide newsletters bearing tips about investing which are not essentially stock recommendations. You are here advised to pick the best discount broker in India so that your wealth is in safe hands and increases with right management.
The full service or traditional broker holds out the suggestion about specific stocks so that you may consider. This broker starts by assessing your finances that concerns to your individual situation in order to decide your goals and your appropriateness to different investments. This type of broker assembles a plan for investment which you have to review at regular intervals and carry out adjustments thereof. If you don’t have the time or don’t want to take decisions yourself, this brokerage is the best fit then.