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Discount Broker vs Full Service Broker: Difference & Which is Best?

Discount Broker vsFull Service Broker: Difference & Which is Best?

Investing in the stock market or equities is not possible without a broker who is registered with the regulatory authority and the stock exchanges, or you can say they are the only authorised entity to allowing various platforms for the people to invest in the various financial instruments.

Hence, if you are also looking to invest in equities or enter into the stock market to earn some extra money or create wealth by investing your money into listed companies in India, you also need to get in touch with the broker providing the booking services. When you explore the list of brokers you will get unlimited names and brands offering broking services in the stock market.

But here you need to understand which one to choose as there are two types of brokers operated I India. One is known as a discount broker and the second is better known as a full-service broker. Here, so you need to understand the difference between them and which one is best or can better help you in investing in equities or any other segment like commodities and currencies.

Also Read: Equity or Commodity which is better for Trading or more Profitable

To make a better understanding of the difference between full-service and discount brokers and which is a better between both of them we brought here a detailed discussion. You can go through this article and get to know more about discount brokers and full-service brokers with their key differences and advantages or disadvantages that will help you to choose the best one.

What is a Discount Broker?

A Discount Broker is a broking entity to provides an online facility to buy and sell orders at lower commission rates compared to a full-service broker. And usually discount broker also not performs the analyses and don't provide any investment advice to their clients. They usually offer a trading platform for customers to simply put their buy and sell orders at discounted brokerage.

What is s Full Service Broker?

A Full Service Broker is like a traditional broker offering a wide range of related services like trading or investing facilities in the stock market, investment advisory, research and analysis into various segments like equities, commodities and currencies. A full-service broker is involved in various investment and broking-related services, hence offering well-diversified services to their customers.

Also Read: Equity or Commodity which is better for Trading or more Profitable

Difference between Discount Broker and Full Service Broker

Basically, the quantity of services between the discount broker and full-service broker is the key difference you can find between these two entities. However, one of the differences between full-service and discount broker is the rate of broking charges, as they both have their own criteria to charge the brokerage like fixed or flat rate on each transaction in percentage of total value.

Accessibility of Trading Platforms

A discount broker usually offers their broking services through online apps with no offline desk or offices to deal with end customers. While a full-service broker provides the best online trading platform integrated with various unlimited features. Apart from a web page they also have mobile applications to access or trade through various online cross platforms.

Types & Number of Service Offerings

Most discount brokers in India offer only the trading platform and some of the tools to add funds, buy and sell stocks or check your demat account through a mobile application. A full-service broker along with the trading facility also offers multiple other services like depository services, portfolio management, wealth management, investment advisory research analysis etc.

Representative Offices & Branches

Discount brokers don't have multiple branches or representative offices in different parts of the country. They usually have only corporate offices and limited offices as they mostly asset their customers either through Chatbots or online customer support services. Discount brokers operate everything through their trading apps you will not find the offline offices or any branches.

Conversely, a full-service broker operates through multiple branches, they have representative offices, franchises and sub-brokers in different cities to provide an outreached service to their customers. Full-service brokers provide both offline as well online broking services through these offices and also assist their customers through these branches with online service.

Customer Support Services

Due to having only online services, discount brokers can asset their customers only through online modes. To solve your queries or avail of customer support service, you have to contact discount brokers only through their mobile application. They will assist you only digitally either through AI-backed Chabot or online customer support representative through phone call or email.

However, a full-service broker provides various modes of customer support to survive to assist their customers. Apart from online chat services, you can also call their customer support service anytime or reach the nearest branch to resolve your technical problems or solve trading-related issues.

Types of Customers & Investors

Discount brokers are suitable for the investors who are tech-savvy or have the technical knowledge and experience to operate the mobile-based application themselves without any help. Most of the investors or traders have knowledge and experience of trading and investing or can perform their own research and don’t need any advisory services can choose the discount brokers.

Also Read: Difference Between Trading and Investing in Stock Market

While, on the other hand if you’re a beginner and don’t know too much about trading or investing full-service brokers is more suitable. First they are providing research services to every client. Its helps them to take positions in the market randomly rather than doing their own research first.   Traditional types of investors like the aged also prefer to choose the full-service broker, as they need assistance to perform their investing activities on their behalf.

Also Read: Why is Fundamental Analysis Important for Investing in Stocks

Difference in the Booking Charges

Last but not least, one of the major differences between full-service and discount brokers is that they offer trading services at lower broking charges. Discount brokers usually charge a flat rate or fixed brokerage ranging from Rs 15 to Rs 20 per transaction whether it’s any value or volume. Apart from brokerage, they might ask you to use the platform charges and some of the other charges.

Also Read: Best Volume Indicators for Day Trading & How to Use for Intraday

However, a full-service broker charges their brokerage on percentage terms on total value instead of per transaction like discount brokers. Hence, their broking charges might be expensive especially if you trade frequently in high volume or using multiple other services of your broker. However, if you are using various other services offered by the full-service broker, you might have to pay additional charges for that or you can also get the free trading account and demat account against that.

Apart from these six key differences, there are various other factors discount brokers are different from a full-service broker. Discount brokers are usually start-up small companies having only limited services like offering only trading and investing apps for individual market segments.

Also Read: What are the Top Factors Affecting the Stock Market in India

A full-service broker is mostly a big broking house or a company having operations in multiple financial services, like mutual funds, insurance, depository, clearing houses and arbitraging etc. You can say, a discount broker is a small entity while a full-service broker could be a big company or backed by well-known banks or financial institutions operating in other financial services.

Both have their own advantages and disadvantages, but to select between Discount broker and full service broker is not as easy. Here you need to consider various factors as per your preferences, feasibility, usability and affordability of broking services offered by both types of brokers in India. Before we discuss which one is better, let's have a look at the advantages and disadvantages of both discount brokers and full-service brokers listed below.

Advantages of Discount Brokers:

  • Low Booking Charges
  • User-friendly Trading Platform
  • Quick Online Accessible Services
  • Technologically Advanced Tools

Disadvantages of Discount Brokers:

  • Limited Service Offerings
  • Unavailability of Branches
  • No Offline Customer Support
  • Accessible Only Through Gadgets
  • Highly Prone to Technical Glitches
  • No Advisory or Research Services

Advantages of a Full-Service Broker:

  • Full-fledged Broking Services
  • Team of Research and Analysis
  • Availability of Other Related Services
  • Investment Tips &Recommendations
  • Multiple Branches & Representative Offices
  • Accessible via Both Online & Offline Modes
  • Suitable for Beginners or Inexperienced Investors

Disadvantages of Full-Service Broker:

  • High Charges for Broking & Other Services
  • Traditional Approach of Broking Services
  • Use of outdated technology & Platforms

Also Read: Advantages and Disadvantages of Forex Trading: How to Start


Which is Better Discount Broker or Full Service Broker?

Both Full service broker and discount broker have their own pros and cons but to select which one is better is totally depends on clients choice and compatibility. Both are working in a same vertical but on different algorithms. If clients is self driven, technically sound with laptops and computer discount broker is obviously a good choice due to its lows cost broking charges. Nevertheless, with discount brokers, you will not get any advisory services or not able to get any recommendations or tips from the experienced market experts who do the research and analysis. Some discount brokers in this vertical operating at zero broking charges so if client is more prone towards intraday trading with high volume, discount broker surely a good choice.

Also Read: 7 Biggest Mistakes To Avoid While Doing Intraday Trading

Full service broker provides complete and wide range of financial services and maintain proper human resources as compare to discount broker. That’s why they have higher brokerage plans. So if client is not so tech savvy or a busy routine they will prefer full service broker. Here you will also get tips to buy or sell stocks recommended by the research team and market experts.

Also Read: Why You Should Invest in the Stock Market: Reasons  & Benefits

Nevertheless generally small clients familiar with computers and laptop with limited net worth prefer to choose discount broker due to compatibility and low fees. But for high net-worth individuals or for investors having larger stakes in the stock market they should go with a full-service broker or broking house providing the all-in-one services for such clients.

Also Read: Types of Risks Associated with Investing in the Stock Market

Go with Full Service Broker also offering Discount Broking Services

Owing to positive sentiments among the investors and strong volume growth in the stock market, there are multiple discount brokers entered into the market. As a result in a short span of time they  captured a god database of trading clients but now a day’s many full service brokers realizes this paradigm shift and now they have also enters into the field of discount broking for all types of clients.

Also Read: The Ultimate Guide to Finding the Best Discount Broker in India

Therefore it is advisable to select such brokers who also have discount broking services due to their past credibility, full range of services. Here you can enjoy the advantages of using the services offered by both types of brokers in India.

Moneysukh is one of them offering full-fledged broking services and also one of the best discount brokers in India offering a wide range of investment services including trading and investing. Here you will get world-class investing facilities with the advantages of the best online trading app or access your trading account through the best trading platform or web pages from anywhere.

Apart from getting the advantages of recommendations and tips from market experts, you can also use Algo trading to earn extra money from high-frequency trading software. At Moneysukh you can also use various software algorithms like Trade Radar, FoxTrader, Quantman,TradeTron, Keev, and AlgoBulls, all are integrated TradingView charting systems and live market data.

Also Read: What is TradingView & How to Use it for Trading

Using the Trade Radar like software, along with updated market you will also get the facility to read the research reports on companies, sectors and the economy with result updates of all the listed top companies reported from time to time. Furthermore, to improve your knowledge and understandings about the stock market, commodity market and forex market and related terminologies you can also read the tutorials published under the Learn Moneysukh section.

Also Read: Things to Know Before Starting Forex Trading  & How to Start

At Moneysukh you can get the features of the best demat account with the lowest brokerage charges in India at the lowest pricing while ensuring your fund safety and data privacy. Hence, choosing a full-service broker also offering discount broking services would be the best option for you. With such brokers, you will enjoy the benefits of all the services offered by both types of brokers in India and that would be available at lowest brokerage charges.

Also Read: Choosing the right broker: Decoding the mystery of lowest brokerage charges



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    Per order + Get Instant Pledge Benefits* + Zero delivery Brokerage


    Per order only (No hidden charges)

    Open FREE Demat Account in less than 10 minutes


    Per order + Get Instant Pledge Benefits* + Zero delivery Brokerage


    Per order only (No hidden charges)

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