What is the Difference Between Discount Broking and ZERO broking?

Discount brokers have become quite popular in India due to the low commissions and other charges they levy on buying and selling of stocks. Discount brokers have given strong competition to traditional full-service brokers on many grounds, but primarily on the pricing front. Now another revolution, known as Zero Brokerage has entered the Indian brokerage sector, and investors are already reaping its benefits. With zero brokerage on trading, no hidden charges, total transparency in pricing, and access to advanced trading tools, 

Difference Between Discount Broking and Zero Broking

Zero Brokerage is the next level of customer centricity when it comes to broking. With a discount broker, you can trade at reduced rates. Zero brokerage firms do not charge any brokerage on trades while Discount brokers charge a flat fee (typically ₹20) per executed order, irrespective of the trade value.

let us take a look at their key features individually:

Characteristics of Zero Brokerage

• Free Demat account

• Free trading in IPOs, Mutual Funds, etc.

• No account maintenance charges *

• No prior brokerage commitment

• No hidden charges

• No limit to number of orders

• No call & trade charges

• Complete transparency with the broker

* m.Stock offers zero annual maintenance charges.

Features of Discount Brokerage

• Charges of ₹20 levied on intraday and F&O trades

• Recurring annual maintenance charges (AMC)

• No charges levied on stock holdings

• Charges may be applicable for annual platform usage

So, 'Discount Broking Vs Zero Broking - Which Is Better?' While discount broking can help you save more than the traditional full-service broking model, there are still annual/quarterly/monthly/per trade costs that you will have to bear. For a frequent trader these can add up to be quite substantial. Brokerage firms like m.Stock, on the other hand, allows you to trade at minimal brokerage of ₹10 on all trades.