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, Zero Brokerage firms like m.Stock are simplifying the lives of Indian investors and traders.
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. But Brokerage firm like m.Stock, allows you to trade without any brokerage or trading costs on equity delivery, mutual funds, and IPOs.
Here’s a table to help you understand the differences between discount broking and zero broking.
| Discount Broking | Zero Broking |
|---|---|
| Discount brokers charge a flat fee (typically ₹20) per executed order, irrespective of the trade value | Zero brokerage firms do not charge any brokerage on trades |
| The industry rate for using margin trading facility can go as high as 18% | Zero brokerage platform like ṁ.Stock offers the lowest interest rate ranging between 6.99% to 9.99% |
Now that you know the differences between discount broking and zero broking, let us take a look at their key features individually:
Characteristics of Zero Brokerage
Free Demat account
Free trading in IPOs, F&O, Mutual Funds, Currency 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
* Apart from Zero Brokerage, 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, gives you the freedom to trade to your heart’s content without having to worry about paying any brokerage on equity delivery, mutual funds and IPOs. Open an m.Stock demat account now!
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FAQ
Compared to a full-service broker, a discount broker facilitates the buying and selling of shares, at a discounted brokerage rate.