Discounted Trading with Full-Service Guidance: Dhanush’s Unique Brokerage Model

The stock markets around the world have changed drastically over the years since the digitalisation took place. What used to be dominated by full-service brokers is now seeing a huge influx of online stock brokers. For example, as of FY23, the BSE (Bombay Stock Exchange) witnessed 1,270 registered stock brokers. Among the best stock brokers in India, each type of stock broker has its own perks and drawbacks and suits different types of investor styles and preferences. 

Today, we will look into the pros and cons of full-service and online/discount brokers and discuss how Dhanush brings the best of both worlds. Let’s begin!

Understanding stock brokers

In simple terms, an investor cannot trade in the stock market directly; they need a middleman to execute a transaction. A stockbroker is an intermediary that buys and sells securities and equities in the market on behalf of an investor. A stockbroker can be an authorised person or a company by SEBI (Securities and Exchange Board of India) that conducts these transactions in exchange for a fee that depends on the broker. 

Stockbrokers, as we have mentioned above, can be categorised into two types: full-service and discount brokers. While all the brokers execute trades on behalf of investors, some offer personalised advice and guidance, and some offer discounted pricing without personalised assistance. To choose the best broker in India, investors need to evaluate the pros and cons of both types, which we will discuss in the next sections of the blog.

Also read: Full-Service vs. Discount Brokers in India

Full-service stock broker

A traditional stockbroker, often referred to as a full-service broker, is a financial advisor or broking business that offers investors a wide variety of financial services. Personalised advice, customised investment plans, and a hands-on approach to managing customers’ portfolios are the main offerings of a full-service stockbroker. Unlike online or discount brokers, who largely offer service on digital platforms, traditional brokers have a physical location that enables in-person interactions with clients and are frequently connected to reputable financial institutions.

Pros 

• Personalised assistance: Full-service stockbrokers provide customised advice and guidance. With a traditional broker, you, as an investor, might benefit from the knowledge of a financial expert who is aware of their risk tolerance and financial objectives.
• Relationship management: Most full-service brokers offer in-person exchanges through relationship managers to build connections. Traditional brokers can offer continuous assistance and customised solutions through trust and relationship management. 
• Comprehensive services: In addition to trading, traditional broking businesses frequently provide a full range of financial services.

Cons

• Expensive: When compared to online brokers, commission fees and service costs are usually higher for traditional brokers. For investors looking for more affordable solutions, the expense of personalised services could exceed the advantages.
• Restricted accessibility: The accessibility offered by online platforms may be limited when trading through traditional brokers, which may require phone calls or in-person visits. This may be a disadvantage for investors who place a high emphasis on speedy trade execution.
• Limited investor control: Investor control over investments may be reduced as a result of traditional brokers handling portfolios more actively. While this can be a benefit for those who prefer an expert to handle their portfolio, some may prefer a more active strategy that only online brokers offer. 

Online/Discount stock broker

As its name suggests, an online broker is a stockbroker who facilitates the buying and selling of stocks online. In recent times, discount brokers have become so popular in India that the largest stock broker in India is a discount broker today.

Through web interfaces, these platforms let users make transactions, keep an eye on their portfolios, get market data, and carry out financial research.

Pros

• Cost-effective trading: When compared to their conventional counterparts, online brokers frequently provide lower commission fees and transaction charges. Those investors looking to minimise trading costs and maximise earnings may find this cost-effectiveness intriguing.
• Accessibility: Online trading’s accessibility is its defining feature. Investors can use computers or mobile devices to perform transactions from the comfort of their own homes. Discount brokers made instant transaction execution and real-time monitoring possible.
• Abundance of tools: Investors can get hands-on advanced research tools, financial information, and other resources that may all be found on online platforms. These are crucial to making well-informed decisions for every investor.
• Self-directed investing: Online brokers give investors the ability to manage their portfolios. It accommodates people who would rather work hands-on by letting them make transactions and handle their money on their own.

Cons

• Limited guidance: For investors who place more importance on personalised assistance, the lack of in-person contact may be a disadvantage. Online resources might not have the same personal touch or customised guidance that traditional brokers do.
• Technical problems and outages: With online brokers, trading activity may be disrupted by system outages or connectivity issues, which may result in inconvenience and financial losses for investors.

Also read: 5 Top Stock Brokers in India with Lowest Brokerage Fees

Dhanush: Traditional broker benefits at discounted pricing

Dhanush by Ashika Stock Broking Ltd. is an online app for trading and investing that comes with both the benefits of full-service and online brokers. With Ashika Group’s 30+ years of backing, Dhanush offers in-depth research reports every day, week, and month, where investors and traders can get overall market insight along with stock recommendations.

As an investor, you can also avail yourself of the benefits of a relationship manager and, at the same time, the convenience of trading online. Dhanush is also available on three platforms: web, app, and desktop, to make it even more accessible to users. 

Dhanush offers a wide range of financial instruments, from equities and commodities to currencies and F&O. With Dhanush, you can get single-click reports, personalised advice, and dedicated customer support. 

Now coming to the discounted pricing benefits, Dhanush offers affordable brokerage fees. For example, here’s a table with examples to give you a better idea of the pricing with Dhanush.

Delivery	0.05%	For example, for every  ₹10,000 investment, you only need to pay ₹5 for the brokerage fees.
Intraday	0.002%	For every ₹1,00,000, traders need to pay only ₹2
Futures	0.002%	For every ₹1,00,000, traders need to pay only ₹2

Check out the pricing details for Dhanush here.

Full-service brokers vs. online brokers vs. Dhanush

Feature	Full-service brokers	Discount brokers	Dhanush
Affordable brokerage	❌	✅	✅
Relationship manager	✅	❌	✅
Regular research reports	✅	❌	✅
Live monthly research report analysis	❌	❌	✅

Bottom line 

As we discussed, both full-service and discount brokers have their fair share of advantages and drawbacks. For investors, it is important to evaluate their priorities while choosing the best stock broker in India and consider which type of broker suits their needs and preferences.