PROJECT REPORT ON

Study on Growth of Discount Brokers in Last 5 Years

SUBMITTED BY
Abishek Muthulaxman

TYBMS

SEMESTER – VI
2020-21

UNDER THE GUIDANCE OF

MR. Amit Kabra

SUBMITTED TO UNIVERSITY
OF MUMBAI

VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY

(AFFILIATED TO UNIVERSITY OF MUMBAI)
VIDYALANKAR MARG, WADALA (E), MUMBAI 400 037

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 VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY
(Affiliated to Mumbai University)
Certificate

This is to certify that

Mr./Ms. Abishek Muthulaxman Of Bachelor of Management Studies, Semester VI has undertaken &
completed the project work titled Study on growth of discount brokers in last 5 years during the academic
year 2020-2021 under the guidance of Mr.Amit Kabra submitted on 31st March 2021 to this college in
fulfillment of the curriculum of Bachelor of Management Studies of University of Mumbai.

This is a bonafide project work & the information presented is True & original to the best of
our knowledge and belief.

PROJECT COURSE EXTERNAL PRINCIPA

L
GUIDE CO-ORDINATOR EXAMINER

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 ACKNOWLEDGMENT

I hereby acknowledge all those who directly or indirectly helped me in drafting of this project
report. It would not have been possible for me to complete the task without their help and
guidance.
First of all, would like to thank the Principal DR. ROHINI KELKAR and the Vice Principle
PROF. VIJAY GAWDE. And our project in-charge PROF.AMIT KABRA Who gave me
the opportunity to do this project work.
They also conveyed the important instructions from the university time to time. Secondly, I
am very much obliged of PROF. AMIT KABRA for giving guidance for completing the
project.
Last but not least; I am thankful to the University of Mumbai for offering the project in the
syllabus. I must mention my hearty gratitude towards my family other faculties and friend
who supported me to go ahead with the project.

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 DECLARATION

Vidyalankar school of information Technology

(Affillated to University of Mumbai)
Vidyalankar Marg, Wadala(E),
Mumbai 400037

I ABISHEK MUTHULAXMAN, Student of T.Y. Bachelor Of Management Studies,

Semester VI, Vidyalankar School Of Information Technology, hereby declare that I have
completed the project on A Study On Growth Of Discount Brokers In Last 5 Years in
academic year 2020-2021.

The information submitted is true and original to the best of my knowledge.

Signature Of Student
Abishek Muthulaxman

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 Executive Summary

This Is A Project Report On “Growth Of Discount Brokers In Last 5 Years, “Which Is Made
On The Basis Of Articles And Data Research. The Objective Of The Proposed Study Is To
Identify The Advantage Of Discount Brokers.The Study Includes Various Discount Brokers
Companies And Their Growth And Charges Per Trade.I Have Also Tried To Explain About
The Growth Of Discount Brokers In Other Industries And Challenges Ahead For Discount
Brokers.This Project Helps Us To Learn How Discount Brokers Makes Money With Less
Commission Rate And Their Popularity In The Stock Market. In This Project Both Primary
And Secondary Information Are Collected With The Help Of Past Data And Article's.

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 INDEX

SERIAL NO. PAGE TITLE PAGE NO.

CH.1 INTRODUCTION TO THE STUDY 7
1.1 OBJECTIVES OF THE STUDY 10
1.2 HYPOTHESIS OF THE STUDY 11
1.3 SCOPE OF THE STUDY 12
1.4 METHODOLOGY AND SOURCE OF DATA 13
1.5 LIMITATIONS OF THE STUDY 14
CH.2 INTRODUCTION TO THE TOPIC 15
2.1 DEFINITION OF DISCOUNT BROKERS 18
2.2 HISTORY OF DISCOUNT BROKERS 19
2.3 GROWTH OF DISCOUNT BROKERS IN LAST 5 20
YEARS
2.4 PROFIT MAKING OF DISCOUNT BROKERS 22
2.5 ONLINE OPERATION DISCOUNT BROKERS 23
2.6 TYPES OF DISCOUNY BROKERS 24
2.7 ADVANTAGE AND DISADVANTAGE OF 25
DISCOUNT BROKER
2.8 5 FEATURES OF DISCOUNT BROKERS 27
2.9 POPULARITY OF DISCOUNT BROKERS IN 28
INDIA
2.10 TOP 7 DISCOUNT BROKERS IN INDIA 30
2.11 ADVANTAGE OF DISCOUNT BROKERS OVER 45
FULL SERVICE BROKERS
2.12 DISCOUNT BROKERS IN OTHER INDUSTRIES 46
2.13 CHALLENGES AHEAD AND FUTURE GROWTH 47
OF DISCOUNT BROKERS
CH.3 REVIEW OF LITERATURE 48
CH.4 DATA ANALYSIS 51
CH.5 FINDINGS 62
CH.6 CONCLUSION 63
CH.7 QUESTIONNAIRE(BLANK COPY) 65
CH.8 BIBLIOGRAPHY 67

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Study On Growth of Discount Brokers In Last 5 Years

CHAPTER.NO: 1 Introduction of the Study

A discount broker is a stockbroker who carries out buy and sell orders at reduced commission
rates compared a full-service broker. However, a discount broker does not provide investment
advice or perform analysis on a client's behalf, unlike a full-service broker. Before the
emergence of better communications technology, only the wealthy could afford a broker and
access to the stock market.
However, the Internet has brought an explosion of discount online brokers that allow
individuals with smaller capital to trade for lower fees and with less capital.
In term of the stock market, most discount brokers operate through online platforms.
As result, a discount broker is nearly synonymous with online brokerages

KEY TAKEAWAYS:

A discount broker is a stockbroker who carries out buy and sell orders with little or no
commissions.
Discount brokers do not provide the investment advice or guidance provided by a full-service
broker.
Discount online brokers compose a large section of the fintech industry

The discount brokerage has set up a totally new investment scenario in India. You would be
surprised to know that plenty of first time investors are showing up due the presence of
discount brokers around. So, let us understand what discount brokerage is and what the
benefits of opting for it. Looking at the current needs and the changing trends of the stock
market, the stock market brokerage is divided in to two categories, which are, discount
brokers and full-time service brokers. The fee charged by discount brokers is very small as
compared to full-service brokers. Sometimes these discount brokers may choose to give a
small piece of advice here and there along with brokerage services to maintain their clientele.
Discount brokerage refers to a brokerage firm or a stock broker who charges a reduced
commission on enabling the buying and selling transaction of shares. A discount broker does
not provide any help regarding which stocks to buy or sell and also does not offer any other
advice on this matter.

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Earlier, as the discount brokerage seeped into India, there was more number of conventional
or traditional brokers, but, now most of them have turned themselves into internet discount
brokers. One of the advantages, of appointing discount brokers is that they usually don’t offer
advice, so they don’t push you to buy or sell anything. The second benefit is that most
established discount brokers offer a lot of study material on their websites
One of the things that you need to watch out for while dealing with discount brokers is that
they may have some hidden charges. They may boast about their low fee initially but may
later come up with an additional fee for mailing the details or issuing a stock certificate.
Moreover, you must ensure that discount brokers have good customer support to offer. Any
transactions that are carried out for you need to be communicated promptly to you, and you
must be able to get-in-touch for any further follow-ups
A discount broker is simply a brokerage firm that offers discount trading rates to investors.
The brokers work at a discounted commission rate to accommodate their clients. Thus, the
primary appeal of a discount broker is to investors whom discount broker is simply a
brokerage firm that offers discount trading rates to investors. The brokers work at a
discounted commission rate to accommodate their clients. Discount brokers – either
individuals or firms – complete buy and sell orders for clients. They do not, however, provide
specific trading advice or other services. Thus, the primary appeal of a discount broker is to
investors who manage their own investments
. A discount broker is a brokerage that executes buy and sell orders, often for clients with a
lower income or small investors; they operate with lower commission fees.
The primary advantage of working with discount brokers is that their commission fees are
lower than full-service brokers, who offer a wide variety of services, though their
commission fees are typically pretty high.
The major drawback to working with discount brokers is that the process of investing is
largely placed on the client; if the client is inexperienced at investing, using a discount broker
isn’t advised.
Discount brokers carry out orders at less cost, but they typically just execute orders for their
clients. These brokers do not offer personal consultations, advice, research, tax planning, and
estate planning services for customers. The lack of these services, and because they do not
spend money closing deals with high-net-worth individuals, means that discount brokers can
offer lower fees. Additionally, most discount brokers operate their businesses online where
the overheads are low. So low in fact, that beginning in 2019, many discount brokers even
went so far as to forego commissions altogether for certain types of securities.1

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In the securities industry, discount brokerages provide clients with their own accounts to
enter orders for execution. These investors usually do not interact with a live broker. If they
do, the communication is minimal and only engaged in for trade executions. The services
provided by discount brokers are aimed at self-directed traders and investors, and the
electronic trading platforms are built in a way that is beneficial for active traders with
charting and position monitoring services.

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1.1 Objective of the Study

• To study the reason for growth of discount brokers in today’s India.

• To study the difference between complete/whole broker and discount brokers.
• To study the advantage of discount brokers.
• To study about various application (apps) which are used by discount brokers.
• To study whether the service provided by discount broker are relevant or not.
(basically, the service is useful to us or not)
• To study investor satisfaction with discount brokers.
• To study how discount broker make money with low commission rate.

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1.2 Hypothesis of the Study

According To Null Hypothesis Of The Study, It States That Discount Brokers Doesn't Charge
High Commission Rate And Discount Brokers Doesn't Provide Research And Customized
Advices.

According To Alternative Hypothesis Of The Study, It States That Discount Brokers Charge
Less Commission Rate And Discount Brokers Does Trade With Us In Online And Call
Center

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1.3 Scope of study

This Research Provides Me With An Opportunity Of Explore In The Field Of Finance. The
Purpose Of This Study Is To Explore A View On Discount Brokers. This Project Is Helpful
To Identify And Gives Us The Information On Growth Of Discount Brokers In Last 5 Years.
To Develop This Perception, This Study Help Us To Know That Discount Brokers Charge
Minimum Brokerage And Thus Prove To Be Quite Economical. This Research Also Help Us
To Find Out The Top Discount Brokers In India And Online Operations Of Discount
Brokers, Thus It Also Help Us To Study About Discount Brokers In Other Industries.

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1.4 Methodology and Source of Data

• Methodology Used

In This Study Both Primary As Well As Secondary Method Of

Data Used To Study And Analyse The Data Collected And
Found.

• Sources Of Data

1. Respondents Of The Questionnaire

2. Past Data, Article, Projects On This Topic And Or Related

Topic.

3. From The People In The Surroundings

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1.5 Limitations of the Study

• Research Is Based On Growth Of Discount Brokers

• Time Frame Available For The Study Is Limited Effectiveness

Of Response Varies From One Respondent To Another.

• Opinion From The Respondents Maybe Considered As

Limitations Of The Study
.
• The Sample Size Is Limit

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CHAPTER NO: 2: Introduction To The Topic

A discount broker is a stockbroker who provides quintessential trading services at a reduced

commission rate. It focuses on offering a robust online platform for enabling buy and sell
transactions. A discount broker, is some cases may also provide the requisite knowledge
material, essential for trading.

However, other allied services, which are not directly involved in trading, such as investment
advisory, market analysis etc. are not provided by such brokers. In other words, a discount
broker enables order execution for its clients, but it doesn’t provide any analysis or advice
regarding trading.

Rising Internet penetration has given a boost to discount brokers, who are now synonymous
with online brokerages.

A discount broker is a no-frill broker like a low cost airline. All the broker does is offer the
platform for transaction and the services that are essential to complete a transaction, just like
a low cost airline’s sole aim is to take you to your destination safely.Before you rush to open
an account with a discount broker, remember to check if there are any hidden costs behind
the low brokerages that are advertised.Discount brokers can provide similar services or better
in some cases because they leverage technology, do not invest in branches and use digital
platforms to fulfil customer needs and pass on all the cost saved to the customer in the form
of reduced brokerage commission.

These brokers are also known as online discount brokers as they entrust the complete
responsibility and authority of the customer’s account to the customer himself by envisioning
and creating sophisticated, efficient, easy-to-use digital platforms eliminating any middlemen
leading to reduced costs for the broker and increased savings for the investor.

Since the brokerage charges are low or discounted, they are termed as discount brokers. Since
the investment activity can be conducted by the investors online through digital platforms,
they are also termed as online discount brokers.

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Discount brokers come in all shapes and sizes. Some are known to feature better investing
tools than others, but charge higher fees, while others might give only the basic broking
services, but charge the lowest fees.

With discount brokers, you can either perform a trade on web automatically through a
computerized trading system or call in your order with a broker over the phone.

A demographic shift towards technology has given rise to a new breed of stock brokers,
known as discount brokers. Unlike a traditional broker, a discount broker’s services are
limited and restricted primarily to providing a trading platform.

Discount brokers in India differ from their traditional counterparts in several aspects. While
you may find trading services at the core of both their businesses, the difference lies in:

• Brokerage charges:- Discount brokers in India mostly charge

flat fee of Rs. 10 –20 per executed order.

• Service type:- Discount Brokers run their business on a

“no-frills” model. By focusing only on core
transactional services, they cut down on costs.
The benefits are passed on to you in the form
of reduced pricing. Moreover, discount brokers
conduct their businesses online. It further
contributes to reduced costs and enhanced
accessibility.

• Market inputs:- If you are a seasoned investor capable of

conducting your research, you can opt for a
discount broker.

• Customer Support:- Apart from providing core services online,

most of the customer communications
from discount brokers are through
web-based services like email and chats.

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 The best discount brokers in India are
using chatbots, integrated with AI and
machine learning, to offer 24x7 customer
support services.

Discount brokers carry out orders at less cost, but they typically just execute orders for their
clients. These brokers do not offer personal consultations, advice, research, tax planning, and
estate planning services for customers. The lack of these services, and because they do not
spend money closing deals with high-net-worth individuals, means that discount brokers can
offer lower fees. Additionally, most discount brokers operate their businesses online where
the overheads are low. So low in fact, that beginning in 2019, many discount brokers even
went so far as to forego commissions altogether for certain types of securities.
So, in case you undertake high volume trades and have the requisite knowledge, it is
advisable to go with a discount broker.
However, in the past few years, discount brokers have enjoyed quite a success. A discount
broker is a stockbroker who provides quintessential trading services at a reduced commission
rate. It focuses on offering a robust online platform for enabling buy and sell transactions. A
discount broker, is some cases may also provide the requisite knowledge material, essential
for trading.

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2.1 Definition of Discount Broker

A discount brokerage is used for buying and selling securities at a lower rate. A discount
brokerage is ideal for investors who trade frequently but don’t need investment advice and
have smaller portfolios. Compare that with a full-service brokerage, which offers financial
planning, advice and wealth management services.

Discount brokerages usually offer sophisticated online trading platforms that let customers
order financial products such as stocks, bonds and commodities. This type of trading is often
intimidating to novice investors.

A discount brokerage, like a traditional brokerage, should be registered with the Securities
and Exchange Commission (SEC) and be a member of the Financial Industry Regulatory
Authority (FINRA) and the Securities Investor Protection Corp.

There are also discount brokerages that offer insurance products. They usually charge one-off
fees and don’t dispense advice, so they’re cheaper than a typical insurance brokerage.

In real estate, discount brokerages let clients buy and sell real estate, including properties that
are on the multiple listing service, or MLS. Redfin is an example of a discount real estate
brokerage.

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2.2 History Of Discount Brokers

In the recent times, there are quite a few companies emerging as Discount Brokers and the
are doing some good amount of business too as they are attracting more and more fresh
traders for business.

Some of top Discount brokers in India are Zerodha, 5Paisa,

UPSTOX, Trade Smart Online, Angel Broking.

Most of these discount brokers offer cheap brokerage plans or unlimited brokerage plans
wherein they charge a fixed amount per month or annually and the customers can do
unlimited trade irrespective of the number of trades and the amount of trades.

Due to these unlimited plans, they are also known as Budget Brokers or Flat Fee Brokers who
charge a flat fee for unlimited trade. Its not been a long time that Discount Brokers have
ventured in India; this concept started out since early 2010.

However, the concept has spread like an epidemic in the Indian Stock Broking community
and ever since these Brokers have been launched, India has seen thousands of regular traders
move out of Traditional Brokers and they have turned to Discount Broking.

Not only this, ever since Discount brokerage system has been launched a completely new set
of population has started trading in Stock Market thus uplifting the entire ecosystem.

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2.3 Growth Of Discount Brokers in India In Last 5 Year

Over the past few years, the discount brokerage has picked up good growth discount
broking, which till recently was looked upon as an evolving industry in India, is now gaining
pace and is soon expected to be on par with full-service broking before even gaining a
majority share of the market.

Leading discount broking players are registering strong growth in client acquisition and
overall business volumes and, according to industry players, the upcoming entry of Paytm
Money is only expected to further drive the growth of this segment wherein investors stand to
gain with almost nil to very low broking charges.

Some of the leading discount broking entities in India are Zerodha, 5Paisa, Upstox, and Trade
Smart Online, among others. Incidentally, some of the full-service broking outfits have also
launched discount broking schemes to attract clients looking for a pure trading platform sans
any value-added services such as research and advisory.

The structure of the equity market brokerage industry is undergoing a sea change. Discount
brokerages, the one that charge flat commission even on high-value trades, have strengthened
their market share. As per industry estimates, the market share of the top five discount
brokers is now about 18-20 per cent in the overall equity and commodity markets broking
commission pool. The commission pool in pure play stocks and commodities could be
between ₹3,000 and ₹5,000 crore

Discount brokers are the biggest beneficiaries of the recent change in SEBI norms.

Still, bank-baked brokers like ICICI Securities, HDFC, Axis Direct and SBICaps, among
others, have a lion’s share of brokerage pools. Rise in mobile trading is one the key reasons
for the jump in market share of discount bro

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Market regulator SEBI’s recent rule on upfront collection of margin in the cash market and
high-value derivative margin that are the reason for the other key catalysts from December
are other key catalysts aiding the growth of discount brokers

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2.4 Profit Making Discount Brokers

However, in the Discount Broker Model, the rates have been slashed to nearly 50-60% of the
original ones & Cost of the Discount Brokers charge Flat Fee of between Rs.10 to Rs.20 per
Trade.

First and foremost the Discount broker has completely reduced his overhead costs. So the
initial investment on office space, staff, stationary cost, travel costs etc have been cut down
drastically.

The only infrastructure that the Discount broker works on, is his Trading Platform. They
invest in making a robust platform and give it away to customers with an annual access
charge which makes their as well as their customers’ lives easier.

These platforms are generally based on DIY methodology where one can easily take a demo
on how to trade and get started himself without any assistance.

The Discount broker also launches some fixed rate brokerage plans wherein one can pay a
monthly subscription fee and trade unlimited.

These subscription fees also becomes his earnings. There are also plan that have a per trade
rate For Eg: Bonanza Portfolio charges Rs. 20 per trade brokerage irrespective of the amount
of trade done.

Apart from Brokerage, the broker also markets other financial products and the commission
of those product sales also become his earnings. Moreoevr, some other brokers also charge a
nominal amount towards the Annual maintenance of the Demat and the Trading account.

Overall the Discount broker makes money by adding more and more customers in his
network by way of word-of-mouth marketing. The more customer trade through him, the
more profits he would yield in the business.

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2.5 Online Operations of Discount Brokers

Discount brokers in the securities industry are, more and more, conducting their business
online, meaning clients rarely get any type of personal interaction. The brokers usually set up
online accounts for clients so they can submit their orders for the broker to execute. Live
communication with the broker is rare.

Discount brokers online are designed for investors and traders that know what they want and
which orders they need to be executed. The platforms that discount brokers tactically provide
are created with the intention that active traders benefit by submitting orders and then
monitoring the orders’ progress with their own charting/position services.

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 2.6 Types of Discount Brokers

Discount brokers are categorized into 2 subcategories in India with respect to their way
of charging brokerage:-

• Fixed price per trade:- Some brokers in India charge a fix price from you per trade
irrespective of the size of your trade. These charges are very low - they can vary from Rs. 9

to Rs. 20 per trade. Upstox charges users ZERO for delivery trades, and Rs. 20 for intraday
trades.

• Fixed monthly charge:- Some others charge a fixed monthly fee from traders, regardless of
the number of trades or the exchanges on which they perform. They will charge you the exact
same amount each month, even if you perform unlimited trades.

2.7 Advantage and disadvantage of discount brokers

Advantage of Discount Broker:

• Lower Cost:- This lower cost is usually the result of lower commissions, and it’s
the primary benefit of using discount broking. Lower cost is one of the greatest advantages
of discount broking, which is one of the major reasons why discount broking would be
preferred.

• Unbiased Service :- Because they don’t offer any advice, discount brokers have no vested
interest in trying the customer to buy or sell a particular stock. They have no hidden agenda
or interest vested. They just offer the service of buying and selling, i.e., executing a trade.

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• Access To Information :- Established discount brokers offer extensive educational
materials at their offices or on their websites. Investors with low capital previously did not
have access to the markets. After the introduction of a discount broker, they could invest by
paying low fees and brokerages.

• Cost Effective :- Discount brokers are a cost-effective way for a confident investor to get
his or her trades executed without spending a lot of extra money with a full-service broker.

• Independent Investor :- Independent, self-directing investors – especially those that are

already working with a financial advisor – benefit the most from discount brokers.

Disadvantage of Discount Brokers:

• No Guidance/Research :- Because you’ve chosen a discount broker, you have no access to

expect guidance, but the broker should make this clear to you at the word go. However, if
you’re a knowledgeable investor, the lack of advice can be a blessing in disguise in a way —
as it would ensure no interference.

• Hidden Fees :- Discount brokers may shout about their lower commissions, but
commissions aren’t their only way of making money. There exists a concept called hidden
costs.

• Minimal Customer Service :- If you deal with an internet brokerage firm, find out about its
customer service capability. If you can’t transact business on its website, find out where you

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can call for assistance with your order and there is very low or no interaction with the live
broker.

• Lower Margin Against Shares :-Unlike traditional players, discount brokers do not provide
margin money against shares, mutual funds and fixed deposits.

• Investment Advisory :-There is an absence of investment advisory, consulting, and research

service, which makes it suitable only to investors who have done their own research.

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2.8 5 features Of Discount Brokers

Discount on Brokerage Charges:- Discount Broker name has come from the massive
volume of discount they offer on brokerage charges Currently these 10 be discount
brokers offer either flat brokerage rate of around INR 10-20 per order for all asset
classes or as minimal as 0.01% on overall turnover. This brokerage is extremely low
compare to any other full service broker.

Online Account Opening Process:- Most of the discount brokers don’t have a massive
sales team, so their entire account.
opening process happens online or via call assisted online. This decreases the
operations cost significantly for these discount brokers & improves th e business ROI.
For this online account opening process the prospect needs to have his/her PAN &
Aadhaar details.

No Physical Presence:-
By no physical presence, we mean that these top 10 discount brokers don’t have any
branch or offline presence. Their entire work happens from Central office.

No Research or Advisory:-
Discount brokers don’t provide any kind of research & advisory support to their client.
Our list of top discount brokers don’t have a massive research team who works on
daily basis & provides stock tips & reports.

Zero Margin Money:-

All Discount brokers follow a policy of zero margin money. During account opening
process they don’t take any money from the client & they open demat & trading
account without any Margin money. This list of best discount broker follow the same
policy.

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2.9 Popularity Of Discount Brokers

The internet has had a fascinating impact on information and accessibility. Information is
now democratised - everyone can get it whenever they choose to!

With faster speeds and more bandwidth, it is possible to challenge the hegemony of large
brokerage firms and deliver world-class, competitive trading platforms and services at a
fraction of the cost.

This has led to a surge in the popularity of discount brokers in India - since traditional
brokerages no longer offer anything compelling.

Additionally, another important factor is the increasing rate of financial literacy in India.
Larger numbers of people are now learning to invest and grow their money, especially so
after events like demonetisation. For beginners stepping into the market, discount brokers
make perfect sense to start with.

The trend of discount brokers emerged sometime around 7 years ago, back in 2010. Many
people in India are investing using their own judgement.

• Investing through discount brokers is quite cheap. It is 90% cheaper than traditional
brokers. Profits are not eaten up by high brokerage of traditional brokers.

• Like any other industry beginning to behave like a monopoly, the traditional brokerage
industry has been no different, with business intent slowly changing to be profit-driven
instead of being customer-centric. Continuous ‘buy’ recommendations from traditional
brokers lure the client to buy new stocks. This results in huge brokerage charges. In the long
run, this doesn’t produce great profit.

• India is a young country. The median age of our population is just 29 years. Young traders
are familiar with new technology, thus they prefer discount brokers built on newer, advanced
platforms over traditional brokers.

• Trading with discount brokers is all about speed. Slick, fast user interfaces and backend
systems make them a lucrative option for short-term traders.

• People in India are diving deep into the stock market. Like a country beginning to announce
itself on the global stage, it population too prefers to go with their own decisions rather

than blindly relying on expert advice.

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2.10 Top 7 Discount Brokers In India

ZERODHA:-

Zerodha, founded in 2010 by Nitin Kamath, is the biggest discount in India that offers
free equity and mutual fund investments and flat brokerage on Intraday & all other
traders. It has over +3 million clients and contributes to over 15% of daily retail
trading volumes across the Indian Stock Market.

Quick fact— According to the Jan 2021 report by NSE, Zerodha is the biggest
stockbroking firm in India (client-wise), outranking many old and big broking
corporates like ICICI direct, HDFC Securities, Sharekhan, etc. Through its innovation
and practical approach, Zerodha has been able to outrank all these big players.

Zerodha brokerage charges:-

– Free equity delivery: All your equity delivery investments (NSE,

BSE), absolutely free — ₹0 brokerage.

– ₹20 intraday equity and F&O trades: ₹20 or 0.03% (whichever is

lower) per executed order on intraday trades across equity,

currency, and commodity trades across NSE, BSE, and MCX.

• Zerodha Demat And Trading account opening Charges:-

For opening a trading and demat account at Zerodha, here are

the charges:

— Equity Trading Account: ₹200

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 — Commodity Account:₹100

So, if you wish to open the Trading, Demat & Commodity account with Zerodha, the
total account opening charges will be Rs 300. Further, the annual maintenance charge
(AMC) for the demat account is Rs 300.

• Services offered: Zerodha offers trading and investment

services in equity, derivatives, currency, mutual funds & commodities.

• Advantages And Disadvantage Of Zerodha:-

• Advantages of Zerodha:- — Free Equity Delivery.

— Flat max brokerage per trade is Rs 20

— Innovative & User-Friendly trading platform.

— Big brand value and customer support.

— Direct Mutual Fund Investment from same demat account.

• Disadvantages of Zerodha:-

— No research report, market tips/recommendations

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ANGEL BROKING:-

Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in
the broking world and +1 million happy customers. They have a presence in over
1800+ cities in India.Although Angel Broking worked as a full-service broker and
offered a percentage brokerage charge to its clients for over two decades. However,
they recently changed their business model (Nov 2019) from percentage brokerage to
flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa,
Upstox, etc.

Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’.
Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday,
F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per. The same simple
rate is applicable across exchanges and segments.

One of the key advantages of trading with Angel Broking is that they provide
guidance/recommendations for investing in the stock market along with research
reports on companies and many other value-adding tools and services.

31
• Services Offered:- Angel Broking offers its services in Equity,

Commodity, Currency, PMS, Life Insurance, ETFs, IPOs &

Mutual Funds.

• Angel Broking Brokerage Charge:-

— Delivery charges: Rs 0

— Intraday Trading: Flat ₹20 Per Trade

— Equity F&O: Flat ₹20 Per Trade

— Currency F&O: Flat ₹20 Per Trade

— Commodity F&O: Flat ₹20 Per Trade

• Account Opening Charges with Angel Broking:-

— Account opening charge: Rs 0 (Currently Waived)

— Annual Maintenance Charge: Rs 450 (Second year onwards)

• Advantage And Disadvantage Of Angel Broking:-

• Advantage of Angel Broking:-

— Cheapest full-service broker

32
— Fast account opening process

— Flat brokerage charges,

— Up to 48x leverage,

— Expert Research Reports & market advisory

• Disadvantage of Angel Broking:-

— No 3-in-1 account

— Call & Trade are charged extra

33
5PAISA:-

5Paisa is a part of IIFL (India Infoline) and offers the cheapest stock brokerage in
India. IIFL launched 5Paisa to offer a lower brokerage platform for its clients and to
compete with the fast-growing discount broking industry.

Services offered: Apart from trading in equity, currency, commodity, 5Paisa also offers
its services in mutual funds, Insurances, Personal loans.

5Paisa Brokerage charges

• 5Paisa offers free trading in equity and flat brokerage in other

segments. Here are the brokerage charges offered by 5Paisa:-

— Delivery Trading: Rs 20 per trade

— Intraday Trading: Rs 20 per trade

— Equity Futures: Rs 20 per trade

— Equity Options: Rs 20 per trade

— Currency Futures: Rs 20 per trade

— Currency Options: Rs 20 per trade

• 5Paisa Demat And Trading account opening Charges:-

— Account opening charges: FREE (Rs 650 Waived)

— Annual Maintenance charges: Rs 45 per month (only for

months when you trade)

34
• Advantage And Disadvantage Of 5Paisa:-

• Advantages of 5Paisa:-

— Free delivery trading.

— A low brokerage of flat Rs 10 per trade.

— 100% paperless account investing.

— Investment in stocks, mutual funds & insurance from the

same account.

— Lower maintenance charges.

— Research reports and advisory (for higher plans)

• Disadvantages of 5Paisa:-

— No 3-in-1 account.

— Higher exchange transaction charges.

— No commodity trading facility.

35
UPSTOX:-

Upstox is a fast-growing discount broker, backed by a group of leading investors

including Kalaari Capital, Ratan Tata, GVK Davix, etc. It is also known as RKSV.
Upstox started as RKSV in 2012 and rebranded to Upstox in 2015. As of Jan 2021,
Upstox has the second-highest number of active clients on NSE after Zerodha.

Services offered:- Upstox offers trading services in equity, currency, and commodity

• Upstox Brokerage charges:-

While trading with Upstox, equity delivery trades are free of

cost. For intraday trading on BSE, NSE and MCX, and F&O it is

0.05% or up to Rs. 20 per order traded. Irrespective of the

order size, the brokerage cost is only Rs. 20 per order traded.

— Delivery Charges: Rs 0

— Intraday Trading: Rs 20 per executed trade or 0.05%

whichever lower.

— Futures Trading Charges: Rs 20 or 0.05% (whichever is lower)

per order.

— Options Trading Charges: Rs 20 per trade.

• Upstox Demat And Trading account opening Charges:-

Account opening charges: Rs 300 (Currently Waived)

36
 Annual Maintenance charges: Rs 150

Trading Platform: Upstox Pro Web Trading Platform, Bridge

for AmiBroker, Developer Console, Option Chain Tool, Upstox

MF Platform

• Advantage And Disadvantage Of Upstox:-

• Advantage of Upstox:-

— Free delivery trading,

— Fast paperless demat and trading account opening,

— Margin against share is available,

— 3-in-1 Account available (Partnership with IndusInd Bank)

• Disadvantage of Upstox:-

— Good Till Cancelled (GTC) and Good Till Date/Time (GTD)

— Orders are not available.

— Margin Funding not available on delivery trades.

— Small technical glitches on app reported by customers.

37
PAYTM MONEY:

Paytm received approval from the SEBI in 2019 in order to enter the discount
stockbroking segment. Paytm over the years has tried to establish itself as the one-stop
platform for anything money-related in the recent past. After gaining traction post
demonetization the online payments platform offered banking services, mutu al fund,
SIP, pension products.

Paytm’s plans to enter stock broking couldn’t have come to fruition at a better time. In
the months of April and May, NDSL and CDSL saw an addition of 2 lac and 12 lac
new Demat accounts respectively. The lockdown imposed due to the COVID -19
pandemic has forced the work from home model to be adopted. This has led to an
increase in the first time investors flocking to the stock markets with the added
disposable income, as as they are forced to spend less on leisure due to the pandemic.

• Here are the charges for Paytm Money Demat and Trading

Account:-

— Account Opening Charges: Rs. 200 – One-time Digital KYC

Rs 300 Account Opening Charges

— Depository AMC: Zero Annual Maintenance Charges for your

demat account.

— Delivery Charges:- Rs 0

— Intraday Charges:- Rs 10 per trade

— Futures and Options Charges: Rs 10 per trade

• Note: ₹1 per day as platform charges (billed annually for days

38
 exchange is open) (Source: Paytm Money)

• Advantage And Disadvantage Of Paytm Money:-

• Advantage of Paytm Money:-

— Big Brand with multiple investment options in the same Platform

— Lowest on Intraday – ₹10 per trade.

— Fast online account opening within minutes.

• Disadvantage of Paytm Money:-

— Zero AMC but ₹1 per day as platform charges.

— As a newer entrant, trading platform yet to be tested to work

smoothly on high trading days.

— Currency and Commodity trading facility not available yet.

39
GROWW:-

Groww is one of the fastest-growing investment platforms in India. Groww is the brand
name for Nextbillion Technology Private Limited – a SEBI registered stockbroker and
a member of NSE and BSE. Initially, Groww a Bangalore-based startup was set up in
2016 as a platform to directly invest in mutual funds. Keeping up with the increase in
demand for equity trading in the midst of the pandemic the company also offered
equity trading.

The vision behind the Groww App was to set up was to create a powerful yet simplest
to use App for trading from anywhere. With this, the app came up with the philosophy
of making “Investing should be as simple as online shopping”. Today the company
offers Mutual Funds, Demat Services, Trading Services, Intraday Services, IPO
Services, and Trading Exposure.

• The following table sheds light on the rates applicable:-

— Account Opening Charges: Rs 0

— Annual Maintenance Charges: Rs 0

— Brokerage Charges: Rs 20 or 0.05% per executed trade

(Whichever is lower)

• Advantage And Disadvantage Of Groww:-

• Advantage of Groww Demat & Trading Account:

— Simple and intuitive user interface.

— One platform to invest in stocks, mutual funds, gold and US

stocks.

40
 — Investing facility for US Stocks available.

• Disadvantage of Groww Demat & Trading Account:-

— Futures & Options (Derivatives), Currency and Commodity

trading facility not available yet.

— As a newer entrant, the trading platform yet to be tested to

work smoothly on high trading days.

— Quick Link to open your account at GROWW

41
TRADE SMART:-

Trade smart is a Mumbai, India based discount broker good for traders and investors
looking for low brokerages, high margins, and a fast trading platform. Unlike most
discount brokers, Trade smart online is not a recent setup. It is a part +25 years old
VNS Finance & Capital Limited, which is a traditional broker in India. It ha s over
50,000+ happy customers.

Services offered: Trade smart online offers brokerage services in stock, futures &
options, commodity, and currency trading segments.

• Trade Smart Online Brokerage charges:-

This discount broker offers a flat brokerage of Rs 15 per trade

irrespective of the trading volume in its ‘Value’ trading plan.

Further, it also proposes a ‘Power’ trading plan with a brokerage of 0.007% on the
transaction, which is suitable for the small volume traders.

• Here are the brokerage charges for delivery and intraday

trading:-

— Delivery:- Rs 15 per trade (Power plan) or 0.07% (value plan)

— Intraday Trading:- Rs 15 Per trade (Power plan) or 0.007%

(Value Plan)

• Trade Smart Online Demat And Trading account opening

Charges:-

42
 — Account opening charges:- Rs 400

— Annual Maintenance charges:- Rs 300 (Second year onwards)

• Advantage And Disadvantage Of Trade Smart:-

• Advantage of Trade Smart Online:-

— Low and Unique Brokerage Plans,

— Higher margin for trades,

— Zero additional software charges,

— Zero Demat AMC charge for the first year

• Disadvantage of Trade Smart Online:-

— 3-in-1 not available,

— No direct IPO Investment,

— Call and trade at Rs 20 per executed trade (plus brokerage

43
2.11 Advantage Of Discount Brokers Over Traditional Discount Brokers

Advantages of discount brokers over traditional brokers:-

• Zero/Low Commissions:- Discount brokers charge very low

commissions on your orders.

• Time and efficiency:- Discount brokers need to keep costs

low, and are therefore incentivised to

offer efficient, new age, zippy platforms

that help you place trades with no lag.

• Powerful Analysis Tools:- Discount brokers give you the tools

you need to analyse and study

markets on your own.

• Better Tech:- Discount brokers are more likely to be offering

more convenient and updated services - such as

an online demat account that eliminates

paperwork and further reduces costs not only for

the client but also reduce overhead costs that

works in the favour of the broker’s business model.

44
2.12 Discount Brokers In Other Industries

Discount brokers can also be found in the real estate and other financial services fields.
Discount brokers in the real estate industry help individuals buy and sell properties.
These discount brokers also have access to the same home listings as full -service real
estate agents and help clients to access that directly for a fee, but they do not take the
client through the purchase as a traditional realtor would.

Discount brokers may also sell insurance products—although, again, they do not
provide professional financial advice. In general, if you know exactly what you need
and want, you can probably find a discount broker that will do as you instruct for less
money than an advice-oriented broker would charge.

45
2.13 Challenges Ahead And Future Growth Of Discount Brokers

Though discount brokers in India have become quite popular, yet there are multiple
challenges which they need to overcome. Probably the biggest challenge is to gain trust
and reliability. The stock markets are inherently volatile and amidst pressing times,
expert guidance, provided by full-service brokers, is necessary.

If we try to peek into the future of the discount broking industry, it ’s easy to predict
that prosperous times are in store. The stock markets of India - the standard gauge of
our economy - seem to be on a continual bull-run whose end cannot be predicted yet.
The Nifty has gone beyond the 15,000 mark. These are indicators of a prosperous
market. And, new investors are trying to get themselves a slice of this pie.

The concept of discount broking will continue to evolve and get better with age. The
digital economy is already spreading across different sectors. Expect more innov ation
in trading web platforms, enhancements in mobile trading services and a wider range
of investment options in mutual funds, ETFs, options, forex, as well as an expanding
group of products. Perhaps greater access to trading in global markets will soon be
available too.

However, with technological advancement and rise of ‘do it yourself’ (DIY) customers,
discount brokers in India have a lot to cheer for in the coming days.

46
CHAPTER NO: 3 Review Of Literature

Dinesh Thakkar (2018) “Discount brokers offer the plain vanilla option that traders
need. But a full service broker’s customer profile is different. We focus on first -time
investors, which is a growing market in India. About 10-11 per cent of the population
invests in equity in China; the comparable figure in India is still about 1.5 per cent.
Even if my traders shift to a discount model, I can focus on getting retail investors who
aren’t investing in equity yet.

Vikas Singhania (2019) A full-service broker with a discount broking arm called Trade
Smart Online, said, in the online business, his marginal cost of adding every new client
is nil. “I’m not putting in any incremental cost in serving each new client, so my costs
remain cheap.” He expects discount broking to account for 15 per cent of the total
market by the end of this financial year.

Nikhil Kamath (2020) It is mainly the investors between the age of 25 to 35, who are
inclined towards discount brokerage platforms due to technology. The discount brokers
have been in existence for nearly a decade now. They do not charge any brokerage on
cash market buying and selling. Their flat discount ranges from ₹20 to ₹50 even on
high-value derivative transactions. However, their charges are somewhat similar to the
traditional and bank-backed brokers when it comes to extending leverage trading
facilities to clients

Ashish Rukhaiyar (2019) “With the growing customer base of discount brokers and the
announced entry plan of Paytm Money, the low fixed rate broking model is poised to
grow further,”adding that discount brokers are disrupting the equity broking business.
“The market is about to get even more competitive as incumbents cut pricing further to
defend their market share and new discount brokers enter, while older ones continue to
gain market share. Pricing on the derivatives segment will continue to be very
competitive.

Nithin Kamath (2019) Zerodha commands a 15% market share in volume, registering
2-3 million trades daily with nearly 9 lakh active clients. About 75% of Zerodha's
clients are less than 35 years of age. “The challenge before discount broking is to

47
enhance the size of the market and get more millennials in the capital markets, India
has one of the largest millennial populations and there is huge scope to grow.

Ravi Kumar (2019) The average age of investors trading through Upstox, which has
around one lakh active clients, is 29-30 years. “We have a fairly young population on
our platform. Discount broking could see the kind of traction that the U.S. market is
seeing right now, ”In the U.S., discount brokerages hold over 60% share. Players peg
the share of discount broking at 30% of total turnover in India.

Vikas Singhania (2015) ‘Discount Broker’ is the answer to high transaction costs
plaguing the financial sector. A discount broker is a no-frill broker like a low cost
airline. All the broker does is offer the platform for transaction and the services that
are essential to complete a transaction, just like a low cost airline’s sole aim is to take
you to your destination safely. The near rock bottom brokerage cost makes a lot of
difference for a client. Before you rush to open an account with a discount broker,
remember to check if there are any hidden costs behind the low brokerages that are
advertised. Also, check the infrastructure of the discount broker, his internet
connectivity speed and more importantly if there is a standby mechanism in case either
your internet or the broker’s connectivity is hampered. Another advantage of the
discount broker is that they are unbiased. Since they offer no advice, they will not
make you sell a good stock or at the same time, make you buy one. They will not
bother you with their research calls and remind you of all the trading calls that clicked
while conveniently brushing recommendations under the carpet that did not perform.

As well as the financial cost, marketing your business will require investment of time.
Researching the appropriate marketing strategy, designing and writing the adverts,
getting them published, dealing with any response. It’s important to spend time
keeping track of how successful or not your marketing campaign is. A potential
disadvantage of marketing here is the risk of time wasted for an unsuccessful
campaign.

Research shows that people in general have to see a piece of information between 3
and 30 times before it sinks in. So the obvious disadvantage of marketing here is the

48
fact that your marketing campaign will need to be ongoing and consistent. Increasing
costs and time spent on it. This is where drip marketing comes in.

49
CHAPTER NO : 4 DATA ANALYSIS

1. Gender
(a) Male
(b) female

Intrepretation:

This pie diagram explains that there are around 87 person who had responded about their
gender. In the 87 responses, there are 62.1% are male and 37.9% are female.

50
 2. What is better?

A) Full service brokers

B) Discount brokers

Interpretation:

This pie diagram has a responses of 87 persons, Who had chosen their better brokers. Around
65.5% of the respondents had chosen discount brokers and 34.5% of the respondents had
chosen full service brokers.

51
 3. If discount brokers, Are you aware of discount brokers?

Interpretation:

This pie diagram explain about the awareness of discount brokers. Around 87 persons had
responded about this question, In which 69% of the respondents are aware of discount
brokers due to their growth and low brokerage commissions and 31% of the respondents
didn’t know what discount broker is.

52
 4. What discount brokerage firm do you use for placing trades?
A) Zerodha
B) Angel Broking
C) Upstox
D) 5Paisa

Interpretation:

In this pie diagram there are around 87 respondents, who had chosen their best discount
brokerage firm according to their financial knowledge. 29.9% respondents chosen angel
broking as their discount brokerage firm. 25.3% and 24.1% of the respondents have chosen
upstox and zerodha as their discount brokerage firm respectively. 20.7% respondents have
chosen 5Paisa as their discount brokerage firm.

53
5) How often do you place trade with this brokers?

A) once a week

B) once a month

C) less than once a year

D) once or twice a year

E) several times a year

Interpretation:

This pie diagram explains about how often respondents usually place trade with this brokers.
Around 36.8% respondents place once a month. 20.7% and 18.4% of the respondents place
trade once a week and less than once a year respectively. 16.1% and 8% of the respondents
place trade several times a year and once or twice a year respectively, because this investors
afraid to lose their and don’t have lack of investing knowledge.

54
6) What type of securities do you usually trade with this brokers?

A) Common Stocks

B) Bonds

C) No load mutual funds

D) Mutual funds

E) Foreign Stocks

F) Options and futures

Interpretation:

In this pie diagram explains about the types of securities where respondents usually trade
with this brokers. From the above analysis we found out that 35.6% of the respondents prefer
investing in stocks and 28.7% respondents in mutual funds. 18.4% and 8% of the respondents
prefer to invest in bonds and options respectively. 5.2% respondents prefer investing in
futures and 2.8% respondents in foreign stocks. 1.3% respondents prefer to invest in no load
mutual funds

55
7) What led you to choose discount brokers?

A) Less commission rate

B) Unbiased services

C) No misleading

D) No minimum Brokerage

E) Paperless Account opening

Interpretation:

This pie diagram explains that what led the respondents to choose discount brokers. 49.4%
respondents chose discount broker because of their less commission rate. 24.1% respondents
feels no misleading in discount brokerage firm. 10.3% respondents chosen unbiased services.
8% of the respondents have chosen no minimum brokerage and paperless account opening
respectively.

56
8) Are you satisfied with discount brokers over full service brokers?

A) Satisfied

B) Moderate

C) Not satisfied

Interpretation:

This Pie diagram explains how respondents are satisfied with discount brokers over full
service brokers. Around 59.8% respondents are moderated with discount brokers. 37.9% and
2.3% of the respondents are satisfied and dissatisfied with the discount brokers over full
service brokers respectively.

57
9) How much risk can you take at a time?

A) Whole money

B) Half money

C) depends on market

D) On particular brand only

E) Can’t say

Interpretation:

This pie chart explains about how much risk can respondents take at a time. 42.5% of the
respondents depends on the market to take risk at any time. 26.4% of the respondents can’t
say. 13.8% respondents can risk their half of the income in the share market. 9.2% and 8% of
the respondents can risk their whole income and invest in particular brand only in the market
respectively.

58
10) Are you satisfied by the overall services provided by discount brokers?

A) Satisfied

B) Moderate

C) Not satisfied

Interpretation:

This pie chart explain about how respondents are satisfied by overall services provided by
discount brokerage firm. 59.8% and 40.2% respondents are moderate and satisfied by the
overall services provided by discount brokerage firm.

59
11) Are discount brokers worth it?

A) Yes

B) No

Interpretation:

This pie chart explains about is discount brokers are worth it. 90.8% of the respondents feels
discount brokers are worth it. 9.2% of the respondents feels discount brokers are not worth it.

60
CHAPTER NO: 5 FINDING:

1. Many of the respondents are aware of discount brokers

and they are willing to invest because of their financial
knowledge

2. It has been seen that many of the investors are choosing

discount brokers over full service broker, due to the growth of
discount brokers in india.

3. Zerodha constitutes around 18.85% of the total market share of

the active clients registered on the national stock exchange. It
has over 33.9 lakh active customers compared to a total of over
1.79 crore active clients of all stockbrokers on the national stock
exchange.

4. Discount brokers operate as technology platform and keep

costs of running extremely low, that makes it possible for
discount brokers to make money even by charging a very low
cost fee per transaction.

5. Discount brokerage was very well established concept in

eastern countries before it was introduced in india by zerodha in
year 2010.

6. Investing through discount brokers is quite cheap. It is 90%

cheaper than traditional brokers. Profits are not eaten up by
high brokerage of traditional brokers.

61
CHAPTER NO: 6 Conclusion

After the entry of discount brokers in India, traders and investors have got a sense of relief
from the high brokerage charges of full-service brokers. Different brokers provide different
services and discounts, but it is advisable that you should choose your broker by considering
your trading style and priority services.The emergence of discount online brokers coupled
with the shutting down of traditional brokerages has turned the industry into a business of
high volumes and wafer-thin margins, prompting several large publicly traded broking firms
to expand into lending, wealth management and even insurance.Needless to say, players like
Zerodha are dominating the broking landscape, with more than 1.5 million clients and
accounting for about 10% of the nation’s stock trades in the year ended March.It is against
this rising prominence of discount brokers.

Discount Brokers, as we have seen, started off in early 2010 and in less than 9 years have
become a rage amongst Indian Traders. They offer commission or brokerage at slashed rate,
they save our brokerage amount which we can further invest in other stocks, they provide
state of the art world-class trading platforms which offer seamless trading experience and
they also offer extremely efficient and robust back office engine which can manage all our
trading details.

Hence, Discount brokers are definitely the next gen trading partner for you who can provide
you with latest equipment and trading tools. However, on the flip side, they may not prove to
be as beneficial for a new trader as they do not provide advisory or guidance services to
anyone.

A beginner may need that support and financial advice while starting off, which is
unavailable with the Discount broker; hence it is advisable to check all details and them get
into an agreement with them. Some of the discount brokers have multiplied their business
tremendously in the last 10 years and growing rapidly today as wellAs you can see, the
differences between full service brokers and discount brokers are relatively obvious.
However, as we have already pointed out, online options brokers don't necessarily fall into
one category or the other and the distinctions between the two types of broker are not as
marked as they traditionally were.

62
While it's still very useful to understand how full service brokers and discount brokers differ
to each other, you will find that a lot of reputable brokers effectively offer both and you can
open an account and then select the level of service that you require. You can usually also
change the level of service at a later date if you want to.

Whether you want a full service or a discount service is just one of quite a few factors that
you need to consider when deciding which broker to sign up at, but it's without question one
of the most significant. You will find, as we have just mentioned, that many brokers offer
both services these days, but it really is still very important that you have a clear idea in your
mind about exactly what level of service is best for you and your requirements. You must
then ensure that an online broker can provide you with that level of service before you
actually go ahead and open an account with them

63
CHAPTER NO: 7 Questionnaires

1) Which is better?
A) Full service brokers
B) Discount brokers

2) If Discount Brokers, Are You Aware About Discount Broker?

A) Yes
B) No

3) What discount brokerage firm do you use for placing trades?

A) Zerodha
B) Angel Broking
C) Upstox
D) 5Paisa

4) How often do you place trade with this brokers?

A) Once a week
B) Once a Month
C) Less than once a year
D) Once or twice a year
E) Several times a year

5) What type of securities do you usually trade with this brokers?

A) Common stocks
B) Bonds
C) No load mutual funds
D) Mutual funds
E) Foreign Stocks
F) Options
G) Futures

6) What led you to choose discount brokers?

A) Less commission rate

64
 B) Unbiased services
C) No misleading
D) No Minimum Brokerage
E) Paperless Account opening

7) Are you satisfied with discount brokers over full service brokers?
A) Satisfied
B) Moderate
C) Not satisfied

8) How much risk can you take at a time?

A) Whole money
B) Half money
C) Depends on market
D) On particular brand only
E) Can’t say

9) Are you satisfied by the overall services provided by discount brokerage firms?
A) Satisfied
B) Moderate
C) Not satisfied
10) Are discount brokers worth it?
A) Yes
B) No

65
CHAPTER NO: 8 Bibliography

www.investopedia.com/terms/d/discountbroker.asp

www.edelweiss.in/investology/stock-brokers-fcbd36/all-you-need-to-know-about-discount-
broker-2c68d7

www.google.com/amp/s/www.moneycontrol.com/news/business/personal-
finance/everything-you-wanted-to-know-about-discount-broker-1448347.html/amp

https://blog.finology.in/investing/Growth-of-discount-brokers-in-India

https://tradebrains.in/best-discount-brokers-in-india/

https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/discount-broker/

www.google.com/amp/s/www.bankrate.com/glossary/d/discount-brokerage/amp/

www.thehindubusinessline.com/markets/stock-markets/discount-brokerages-wrest-greater-
market-share-during-lockdown/article32898119.ece

www.wallstreetmojo.com/discount-broker/

www.google.com/amp/s/m.economictimes.com/markets/stocks/news/pros-cons-of-using-a-
discount-broker-for-an-early-stage-equity-investor/amp_articleshow/70710611.cms

66