How discount brokers have over come the barrier imposed by traditional brokers ?

With the increase of usage of Internet in India traders are trading online more and also Discount Brokers have introduced a complete new picture of trading . As compared to traditional brokers, discount brokers offers advanced services satisfying need of a smart trader at most competitive price.

Barriers which are imposed by traditional brokers on traders :

1) High brokerage cost

A large sum of money is to be paid as brokerage for using services of traditional brokers , which if saved can be used by them to further trade in stock market using that capital.

2) Trading terminal fees

They charge traders annual or monthly basis for using their trading terminals depending upon their policies.

3) High Demat account opening charges

To open demat account with a traditional broker, traders have to pay more.Because of burden of these costs often traders fear to trade in stock market.

4) Annual maintenance fees

Almost every full service broker charges this annual maintenance fees for offering their services to traders.

5) Software charges

An additional charge for using software of full service brokers is to be paid by traders.

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