Full-Service Broker vs Discount Broker

Bank savings accounts are something that we are all familiar with. It provides security against theft and improper handling while facilitating simple access to our funds. Thus, a Demat account does the same thing for investors. 

A “Demat Account” is used to electronically store shares and other securities. It must be opened to hold shares that have been purchased or dematerialized, making share trading simple for users during online trading. 

Are you still uncertain about where to open a Demat account? To get your Demat account opening process started, you must provide a few documents. These include a PAN card, address documentation, and bank documentation. A Demat account can be primarily divided into two types – Full-Service Broker and a Discount Broker.

This article clarifies the meaning of full-service and discount brokers, their significance, and how they operate, and it will definitely help you choose the best option. 

Let’s have a deeper look!

What is a Full-Service Broker?

A full service broker offers services beyond your practical ability and provides you with general portfolio management services, investment advice, and tips. 

Full-service brokers are especially well-suited for novice investors who need assistance at every stage of their investment journey. Additionally, full-service brokers are preferred by investors who find it difficult to keep up with market changes. Investors who prefer to trade and invest in person at physical locations favor full-service brokers.

In addition to offering free call and trade services, full-service brokers also offer what most discount brokers charge.

What is a Discount Broker?

In basic words, discount brokers or share brokers are brokerage companies that provide investors with discounted trading rates. To serve their clients, the brokers operate at a reduced commission rate.

Discount brokers—individuals or businesses—fulfill clients’ buy and sell orders. However, they don’t offer specific trading advice or any other services. Thus, shareholders who handle their savings find discount broking most appealing.

However, these brokers do not offer other additional benefits like investment advice or market analysis that are not directly related to trading. To put it another way, discount broking facilitates order execution for its service users but doesn’t offer any trading analysis or recommendations.

Discount brokers, who are now considered to be the standard for online brokerages, have benefited from increasing Internet adoption.

Full Service Broker Vs Discount Broker

Full service broker vs discount broking


Full Service Broker 

Discount Broker


Charge a portion of the trade value typically.

Regardless of the trade value, typically charge for each order that is executed.

Brokerage Charges:


Rs.10 – Rs.30 per order

Broking Services:

Research, advice, and stock tips, discussions for user training, Margin financing services and financial product variety. Few brokers in the brokerage sector offer mutual fund offerings, online trading platforms with distinctive features, and analytical investing tools.

Banking Services:

Can be available

Not available

Customer support: Email, phone call, doorstep servicing, branch servicing.

Online services are available

Appropriate for:

For beginners or frequent traders in need of research and investment advice.

Generally for experts, Online traders with limited trading needs who want to save money on brokerage.

Examples: HDFC, ICICI, Sharekhan, Axis direct, Edelweiss, SMC etc

Zerodha, Upstox, 5Paisa, Trade Smart Online, Stoxkart etc.

How to determine if you need a discount or a full-service broker?

Try this simple activity to determine if you need discount share brokers or a full service broker!

  • Do you require research assistance for stocks and other investments?
  • Are you a high-volume trader who makes millions of dollars each year?
  • Do you require trading assistance?
  • Do you prefer dealing with issues in person?

A full-service broker would be the best option if you answered yes to all of the questions.

  • Do you choose your stocks?
  • Are you familiar with the internet?
  • Are you a seasoned trader who doesn’t require much trading help and support?
  • Do you want to reduce your brokerage fees?

If you answered yes to all of the questions, a discount share broker is all that you need.

Your decision might have a significant influence on how investing goes and how much it costs you.


If you are still unsure after completing the preceding exercise, start by understanding your trading needs, consider the benefits and drawbacks, compare services, and decide. 

The category of brokerage provider you use is largely determined by the amount of equity a trader is willing to invest. It also depends on a trader’s expertise, understanding, and real economic maturity. According to current trends, tech startup investors are rushing towards discount broking, while traders with substantial capital are flocking to full-service brokers.

If you want to go after a discount share broker or a full-service broker, you should think about how much investment you want to make or whether you want any professional to advise. Get your Demat account opening process started right now. We hope this article was a helping hand to you.

Go for the trading game!

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