Are Discount brokers Looting You?

A discount broker is a stockbroker who carries out buy and sell orders at reduced commission rates compared to a full-service broker.

Discount brokers are quite famous in the industry nowadays, because every trader thinks that the discount brokers are working for them to provide a good amount of profits with less charges as compared to full-service brokers.

But is this really true, or something is there that traders aren’t noticing. Or is there some loophole in the system?


While trading with discount brokers you must keep an eye on brokerage plans provided by the discount brokers.

But this is not with every discount broking firm, but if they are mentioning flat fee in their brokerage plans then only you must stay careful in that case.

If your turnover ratio is less then also you must be careful of the discount broker giving flat brokerage plans.

There are many brokers in the market that will provide you with a policy of 0.2% or Rs.20 whichever is less per trade will be executed.

If your trading turnover is less then you should stay away from the flat fee providing brokerage plans discount brokers.

You must catch the tricks played by discount brokers. If you think that paying low brokerage to the discount broker will be profitable for you.

Then you are unfortunately wrong because some of the discount brokers will take brokerage in such a way that you will not realize that you are paying more percentage of your turnover ratio.

Today in this video we will guide you regarding one particular thing that can help you to save yourself from losses.

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