A broker is an individual or firm who provide an intermediary platform between investor and securities exchange. As the securities exchanges takes orders from individuals or from the firms that are members of exchange, individual traders. The online brokerage market services are largely compensated in different ways through commissions, fees or paying by exchange itself. Our online financial broker market provides the research, data, and trading tools helping clients determining the trades making. Brokers further accumulate data by using multiple sources, own research, commentary, and taking insight from experts. Moreover, the best brokers also source research from many locations so that have the ability to update and take most confirmed decision own.
The discount broker is said to be a stockbroker providing the quite essential trading services with the reduced commission rate. The service is designed to focus on offering a robust online platform for enabling users to buy and sell transactions. The discount broker, in some cases further provides the requisite knowledge material, essential for the trading services. Online discount brokerage market sometimes does not include the allied services that are not directly associated to trading, investment advisory, market analysis are not provided by such brokers. Furthermore, discount broker further enables the execution of its clients, which doesn’t provide analysis or advice associated to trading.
The online discount brokerage market have further evolved over the years and provided services that are at par or even better in some of the cases from the traditional brokers. The online discount brokers always targeted towards the self-directed traders and the investors. It also offers lot of training material and videos to assist customers in learning, navigating over the digital platforms, and investing without any of the discrepancies or hiccups. The discount broker focuses only on the essential services such as carrying out buying or selling the orders. The low operating costs further enables them to divert over the resources as per their technology translating into fast, smart and cutting-edge technology available for the low cost to the trader. The increased financial & technological alertness, pricing have now became the most consideration for the tech investors have also lead to emergence of discount brokerage model. The ever changing trend of the investors also preferred to pay for the services availing thereby forcing over various FSBs to launch subscription/fee service plans thereby making them most hybrid in nature.
Some of the key online financial brokerage market consists of firms such as Fyers Securities, Axis Direct, Achiievers Equities Ltd, Aditya Birla Money, Geojit BNP Paribas, IIFL, HDFC Securities, Zerodha, RKSV Securities, 5Paisa Capital Ltd., and Bonanza Portfolio Ltd. The major portion of topline investors comes from the filling buying and selling orders from the clients, the commission & fee-based revenue comes from the principal transactions. Along with it, the interest income have further earned from investments & dividends, investment banking revenue over the underwriting & advisory services. The equity investments are one of the major contributors of market in terms of revenue contributions and increased investment by the asset managers of the mutual Funds and rising number of IPOs. The competitive landscape over the industry further characterized by the highly fragmented market structure with key brokerage firms competing majorly based on transaction charges, service portfolio, service quality, firm’s reputation and online trading support for the retail clients.
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Ankur Gupta, Head Marketing & Communications