Why HNI (High Networth Individual) don't choose discount broker?

 

Based on below stock market there are 3 types of trades/ followers

1. “WHY” Kind :

• They value their time and money
• They do not waste time on experiments, but rather use the experience of others to save time.
• They do not want to lose money in experiments, but instead will save and increase money by learning the do's and don'ts of the market from an experienced broker.
• They will develop a strategy and will not waste time in execution and monitoring if they are self learners.
• They know exactly why they are investing in the stock market; it is not to save money or to have fun, but rather to achieve financial independence.
• They use the experience of experienced brokers to decode the complex market structure in a simple manner.
• They rely entirely or partially on brokers for analysis and execution.
• For more clarity read the below answer:

https://www.quora.com/Should-investors-use-online-brokers-or-work-with-traditional-financial-advisors-when-building-a-portfolio

• These people generally chose full service broker which are rare.
• 2“HOW” kind:
• They value their money but not time.
• They waste time on experiments,than use the experience of others to save time.
• They do not want to lose money in experiments, but instead will save and increase money by learning the do's and don'ts of the market from an Machine or broker
• They will develop a strategy and will waste time in execution and monitoring if they are self learners.
• They don’t know exactly why they are investing in the stock market; They are here to learn a new skill set rather than to achieve financial independence.
• They try to use the experience of experienced brokers to decode the complex market structure in a simple manner and use their knowledge to decode further.
• They partially rely on brokers for analysis Or execution. They are never fully dependent on brokers.
• There are two kinds of “HOW” kinds.

i) Those who learn from machines

• They believe that technology, such as YouTube, is educating them for free. However, learning from some influencers who are not trained in professional finance but are good at marketing will only provide them with half of the information.
• They fail to recognise that YouTube is only a medium, and that the ultimate source of learning is only a human. It is preferable to learn from a physical human rather than a medium. Physical humar will discover your strengths and weaknesses.
• However, we can trust YouTube because we have a history of humans teaching, whereas there is no history of humans teaching.
• Human education is not free.
• These people generally choose discount broker which are more

ii) Those who learn from humans

• They trust human more than machines as human can interpret emotions and market is all about emotions.
• These people generally chose full service broker which are rare.
• 3“WHAT” kind:
• They don’t value both their money and time.
• They waste time and money on experiments. Today’s youth mantra. “In hindi: Me udhna chaht hu, girna chahta hu and khud uthna chahta hu” (Translation: I want to fly, I want to fall and rise myself without anybody’s help).
• They say experience is the best lesson but experiments are not best lesson.
• They will develop a strategy and will waste time in execution and monitoring if they are self learners.
• They don’t know exactly why they are investing in the stock market; They come to the stock market to save money. They think like self employed and not businessmen. They don't trust others.
• They attempt to learn everything from the internet. But not everything is available online. When I asked financial question to chatgpt (the most advanced technology in today's time It replied I am machine and I don't have knowledge regarding this. For this, seek the advice of a financial professional.
• They are not dependent for analysis and execution on anybody.
• These people generally choose discount broker which are highest.

Like in any office there are three categories

1. Owner: Whose ”why” is clear.
2. Managers:Whose “How” is clear
3. Workers/ labours : Whose “what” is clear.

Whose population is more in any office?

There are two types of leaders:

1. True leader

Eg. Full service broker / Experience broker not software company.

• They show the true way. They give clarity regarding “why?” it is necessary for followers
• They think good for followers.
• In market terms this people cater 2 kind of people from below golden circle

i) “WHY?” kind

ii) “HOW?” kind who want to learn from humans.

2.Manipulator

Eg. Discount broker / Experiment software company not broker.

-They show the manipulated way. They do not give clarity regarding “why?” which is necessary for followers but they lure followers with terms which attract them like discount. Etc

for more clarity and charges refer below answers

-They do not think good for followers.

- In market terms this people cater 2 kind of people from below golden circle

i) “WHAT?” kind

ii) “HOW?” kind who want to learn from machines.

https://qr.ae/prRzHJhttps://www.quora.com/What-are-the-major-problems-of-discount-stock-brokers/answer/Karan-Luhana-1https://qr.ae/pr8ILx