How Discount Brokers have revolutionized the trading in India?
Your search for the best discount broker in India will land you across the companies like Wisdom Capital that have inculcated a niche segment of services offered to modern day investors riding on information technology driven infra and tools. The trend started with a notion of online brokerage developed into a fully operational lowest brokerage and the highest exposure facilities build around better margins and leverages. What has been the exceptional achievement of new age discount brokerage firms in India is their capacity to deliver information to investors and trades to act promptly on their positions. Discount brokers has been able to revolutionize the trading scenario in India by following ways and manners.
Making an Impact upon Fixed and Marginal Costs of Services
With imbibing the information technology for disseminating the process involved in trading new age discount brokerage companies has lowered the fixed and marginal costs of producing financial services to a greater extent. They also has been quite impressive as well in posing challenge to traditional traders. The second imperative change seen with the entry of online brokerage firm is availability of range of better trading and stock brokerage services.
Margins Offered by Different Discount Brokers in India
|Wisdom Capital||Freedom Or 0.005%||Up to 60 times depending on brokerage plan|
|UPSTOX/RKSV||Rs 20 per order||Up to 20 times|
|Zerodha||Rs 20 per trade||Up to 20 times|
|SAS online||Rs 9 per order||Up to 20 times|
|5Paisa||Rs 10 per executed order||Up to 15 times|
|Bonanza Online||0.005%||Up to 10 times|
|Tradejini||Rs 20 or 0.01% per executed order.||Up to 20 times.|
|Aditya Birla Money||0.03%||Up to 15 times.|
|Nirmal Bang||0.02%||Up to 10 times.|
|Trade Smart online||Rs 15 per executed order or 0.07%||Up to 30 times.|
Creating a Complete Generation of Overconfident Trader and Investors
The new age online discount brokerage firms adapting the e-commerce services model has changed the promptness of the services. Though majority of traders being utilizing the new tools and models now have a greater control over the results of their trades in comparison to their predecessors. What has made them efficient enough in comparison to conventional traders in terms of trading is real time availability of the data, testifying their beliefs and intuition to pick stocks and other securities.
A Renovated Stock Trading Scenario under New Age Brokerage Firms
The biggest contribution of the discount brokerage in trading sector is the replacement of services from the concrete office structures to software and computer enabled environments. An online discount broker company has diminished the possibilities, where, an investor had to remain alert form the broker of taking undue advantage of him in case of limit order in traditional trading model.
Online discount brokerage firms have saved a great amount of money of trader and investors otherwise incurred expenses while paying excessive fee to tele-broker. The reason for a lower fees with an online broker is lesser set-up fee, the lower number of employees and minimal operational activities. As the fixed cost of operations decided, the marginal costs of trades automatically become nominal and status zero, the services there are offered 24 hours a day, repeatedly.
New Technology Trading Platforms by the Discount Brokers in India
|WISDOM CAPITAL – FOX TRADER||Fox Trader from Wisdom Capital is the known as one of the best trading platforms and is far superior than trading platforms provided by discount brokers in the market. It has unique features like constantly updating market watch offering real time data, data|
enabled charts for the best analysis and predictions,
option Calculator & analysis with best visualization and price alerts to make a better trading decision.
|ZERODHA||Zerodha Pi– It is another popular online trading tool with outstanding features like charts, backtesting, speedy quotes update and bridge with Ami-Broker. Also, it has advanced charting and technical indicators and historical data features.|
|INDIA INFOLINE||IIFL Trader Terminal is unique trading tool with extend charting and analysis features. With Trader Terminal one can trade in cash, derivatives, mutual funds, IPOs, currencies and commodities offered in a single screen. Other features offered by it are instant trade execution, live chat, live research and news, streaming quotes and multiple market watch.|
|SHAREKHAN||ShareKhan’s Trade Tiger – With certain unique features for day traders it is considered best for the intraday traders. It has many advanced charting tools, live streaming quotes, automated order alert, trade from charts, heat map, one click filter, single platform trade on NSE, BSE, MCX, and NCDEX.|
|UPSTOX||Upstox Pro – Available as installer as well as mobile version Upstox pro offers an exciting range of technical indicators and charting features, powerful search feature and the best trade execution tools.|
|ICICI DIRECT||ICICI Direct’s Trade Racer – Featured to a trader it is enabled with live streaming quotes & research calls, technical analysis, and charts, integrated fund transfer system and multiple watch list facility.|
Performance Based Rating for the Leading Trading Platforms in India
|Trading Platforms||Technical Efficacy||Market Watch||Charts||Option Calculator – Analysis||Price Alerts & Advisory|
|1||FOX TRADER (Wisdom Capital)||9/10||10/10||9.5/10||9.5/10||9/10|
Making an Overall Impression upon the Working of Stock Exchanges as Well
In their efforts of make trading more technology enabled, the discount brokerage companies are not at alone and are fully complemented by Stock Exchanges. If the online stock broker is reducing the cost of placing the orders, exchanges are doing vice versa by minimizing the cost of trade execution. The most of the stock exchanges in India are now fully computerized and trades there occur, automatically. The role of the electronic communication networks is of the paramount importance in trade execution at exchanges by providing the low cost trading and liquidity through electronic limit order matching systems.
The electronic trading systems fully utilizes capacities to bring all the possible buyers and sellers so the choice of all the traders should be reflected on terminals. Moreover, electronic system also let to the fragmentation of the market, showcasing, profits or loss at respective sector of the market. With the markets accessible online search engines clearly choose out the best prices from any section and showcases the results online. Summarizing, the network itself becomes the market.
Creating the Fully Aware Well Versed Financial Marketing
The discount brokerage has offered the biggest benefit to a trader by eliminated the middlemen in brokerages. As discount brokerage firm don’t offer any personal advice instead they have plethora of tools to impart knowledge about the capital market in India. Apart from discount broker, the other ways to collect knowledge is turning to different sources for information including websites, chatrooms, forums and advice engines.
But freely available information online varies in high degree quality wise from website-to-website. This result into an inclination from an investor’s part of being reluctant even on paying for a piece of quality advice. The companies has introduced the idea of annual fees in the form of “wrap fees”.
With so much information free available, the most important one that an investors seeks is about the long-term financial planning and asset allocation in comparison to a particular stock or asset. Here, also an investor will not agree to pay a fee on a regular basis for an infrequent advice. He will move towards on-line advice engines. The fee packages for these type of service are to be ranged around on the lower side.
In such a scenario, the traders looking for the solutions for the complex requirement will head towards the ﬁnancial advisors such as brokers or ﬁnancial planners. And will be provided with semi-custom advice. Not only this but in new discount brokerage services environment, the internet is facilitating a different form of advice and new investor services.
Overall, the introduction of discount brokerage firms has let the development of a new trend of self-inspired traders and investors who are reaping returns and investment based upon technology enabled trading platforms.