Is Motilal Oswal a discount broker?

Hey friends! If you are planning to open Demat Account and searching for Motilal Oswal is discount broker or not, then this article might be suitable for you. So today let me walk you through the basic details of today’s topic, so even if you don’t know much about stock trading, you’ll understand everything! Ready? Let’s go.

What Is Discount Broker?

Let me explain in simple terms, A discount broker is like a budget-friendly shop where you get the essentials without paying for extras. It provides the basic tools and services needed for trading or investing at a lower cost. These brokers demand very low fees for their services of trading. You don’t get a lot of fancy services, but they let you buy and sell stocks at super-low prices.

There is other full-service brokers that are like your gourmet shops or the grocery stores right next door. It costs more and broadcasts research reports and other services to enable you to invest too, but it provides a tailored recommendation.

If you’re looking for a low-cost, user-friendly trading platform, Angel One sets apart as a discount broker that charges zero broking on equity delivery and flat fees for other sectors. It’s an excellent option to premium brokers such as Motilal Oswal, particularly for new or budget-conscious investors! Open an account with Angel One– Click here

What Is Motilal Oswal?

But, let’s turn our focus to Motilal Oswal now. This is a popular stockbroker in India that has been in existence for over 35 years. That is older than many of us, More than 40 lakhs customers rely on this company and this company has been awarded for its research and advisory service.

Motilal Oswal providing the facility of investments in stocks, mutual funds, bonds, IPOs, etc. But does that make it a discount broker? Hmm… let’s find out.

New Account Opening Fee/AMC Charges

The third is even better – Motilal Oswal allows you to open a Demat account without having to pay anything! But wait, there’s more.

• They charge Rs AMC (Annual Maintenance Charges) which directly depends on your account balance.
• There is no AMC charges if your holdings are less than Rs. 50,000.
• SME is Rs. 15 per month or Rs. 180 per year The AMC between Rs. 50000 and Rs. 2 lakh is Rs. 100 per year.
• If the amount with the Funds exceeds Rs. 2 lakh, further charges could be different.

Compared to discount brokers like Zerodha, Groww, or Upstox, where AMC is often free or Rs. 300, Motilal Oswal’s charges can seem a bit higher.

What About Brokerage Charges?

This is where things get a little interesting. Let’s break it down:

• Delivery Trading (Purchasing and Ownership of Securities)
• Delivery trading in discount brokers like Zerodha and Angel One traders are free of cost.

However, with Motilal Oswal, the brokerage fee will 0.20% of the transaction value.

Futures

Futures can be defined as the act of buying and or selling the same security in a single trading day. Futures has a brokerage of 0.02% at Motilal Oswal. It is below most brokers and is among the least expensive to find in the market today.

Example: With trade amounts of Rs. 1,00,000 you will pay a commission of only Rs. 20.

Options Trading

For options, it’s Rs. 20 per trade – one of the best rates in the business and lower than even the main broking houses. This is the same as discount brokers like Zerodha, Groww and Upstox. Thus, in some segments such as intraday trading, Motilal Oswal Company works like a direct access facility.

Hidden Charges

Here is some piece of advice you are not ready to hear and which nobody will ever tell you. Certain brokers even incorporate add on fees such as platform fees, transaction fees or even demat charges. They are pretty transparent, but to be safe you need to ensure the term of service on the website before joining.

Extra services from Motilal Oswal

What did Motilal Oswal do that was not offered by the discount brokers? They offer extra services like:

• Personal Advisory: They offer you suggestions on where best to put your money and where is more advantageous to make an investment.
• Research Reports: It makes possible to receive comprehensive works about stocks and it can be useful to make the right decisions.
• Portfolio Management Services (PMS): If you don’t wish to actively engage in managing your investments, this company will do it for you (for a fee).
• Wide Range of Investment Options: Besides, you begin trading in stocks, mutual funds, bonds, and even IPOs all on one single platform.

These services are, however, a rarity with most discount brokers.

Is Motilal Oswal Right for You?

So, here’s the main question: Whether Motilal Oswal is right for you? It depends!

• They didn’t include any beginners in this list as who are usually seeking low-cost trading platforms such as Zerodha or Groww.
• If you’re looking for advisory services, in-depth analyses and a reliable company then you can turn to Motilal Oswal.

For affordable and beginner-friendly trading, Angel One offers zero brokerage on equity delivery and low flat fees, unlike premium brokers like Motilal Oswal. ! Open an account with Angel One– Click here

Conclusion

While Motilal Oswal may not be a outdated ‘discount broker,’ they are not much more expensive than such a model either. In fact, Motilal Oswal is not a discount broker but belongs to the premium broker category. It’s a traditional broker offering high stakes services such as personal consultancy, analyst reports and financial planning. Though such charges like futures brokerage are quite low, other charges (like delivery trading) are slightly higher compared to the discount brokers.

By so doing the following are the options available If you wish to save costs you need to go for the discount brokers. In case you require professional advice as well as do not mind spending additional money – consider starting with Motilal Oswal.

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