The Financial industry is the backbone of every country. Their function is to operate the monetary cycle in the country. Financial institutions are the main driving source that help the country in continuous monetary operations. All the execution of the processes that the Government decides is operated by these financial institutions.

One of the main party that is included in the financial institutions are the discount brokers. Discount brokers are the persons who act as an intermediary between a buyer of a product and seller of the product. Discount brokers are more commonly referred to as a stock broker. A stock broker is a person who acts as a middle man in every transaction that happens on the security exchange. Discount brokers play an important role in the development of the economy.

Nowadays the discount brokers all over the world are updating their methods of operations and are opting to AI-based technology to cope up with the rest of the world. There are many discount brokers in India which are developing their technologies to provide the best services to their customers as well as to the economy as a whole. The role of the Discount broker in the economy is:

• Creating wealth: Discount brokers helps in creating wealth and in multiplying that wealth in the form of investments.
• Acting as an intermediary: Discount broker is an intermediary that helps in making the transaction of particular products by bringing together buyers and sellers. Brokers also charge fees that which is their main source of income in the whole transaction.
• Act as a dealer: Discount brokers also act as a dealer as they also provide liquidity in the market by providing bid and ask prices. The difference between the bid and ask is their income.
• Providing expertise: Many discount brokers also provide their expertise to their customers as to which stock they should buy. Discount brokers give their suggestion based on the time horizon of their customers (both long term and short term).
• Suggestions: Earlier discount brokers in the security market did not provide other services like portfolio management. They just used to give the short term suggestions to buy and sell a particular share and complete the transaction of the customer but with time discount brokers has emerged out to be a variety of service provider. Today many discount brokers try to give suggestions of other securities instruments as well. For example; mutual funds, ETF’s, etc.

 All the requirements of the investor are tried and completed under one roof only. Some of the discount brokers in India have started taking zero brokerage in the equity segment. One such broker is Wisdom Capital. This action of the brokers has helped in increasing the people interest in investing their money in the stock market. The customer base of these brokers has also increased. One should select the broker after enquiring about all the services that it provides to its customers. Discount brokers can also be termed as a backbone of the securities exchange.