Discount Broker

A Discount Broker is a financial intermediary that facilitates buying and selling of securities such as stocks, derivatives, currencies, and commodities at very low brokerage fees compared to traditional full-service brokers. They primarily operate through online trading platforms and mobile apps, focusing on efficient trade execution rather than offering extensive research, investment advisory, or relationship management services.

Key features of discount brokers:

• Low Brokerage Charges: They charge either a flat fee per order (e.g., ₹10–₹20 per trade) or a small percentage, making them cost-effective for active traders.
• Online-First Model: Services are provided digitally through trading apps and websites, reducing operational costs.
• No Advisory Services: Unlike full-service brokers, they don’t usually provide stock tips, portfolio management, or in-depth research reports.
• Access to Multiple Segments: Many allow trading in equities, F&O, commodities, and currencies on exchanges like NSE, BSE, and MCX.
• Technology-Driven: Platforms are designed for speed, transparency, and user-friendly trading experience.

Examples in India: Zerodha, Upstox, Angel One (discount model), Groww, 5paisa, and Sahi.com.

In short, discount brokers are best suited for self-directed investors and traders who prefer to make their own investment decisions while keeping costs minimal.