How To Choose The Right Broker?

How To Choose The Right Broker?

The principal requirement to invest or trade in stock is to have a demat account with a stockbroker. This is where the uphill task of investing in stocks starts from as choosing a right broker is not an easy task. First, you should write down your points of requirements and then start hunting for a broker.

Before investing, you should first know about the types of brokers in India. There are generally two types of brokers in India a) Full Service Broker India, b) Discount Brokers India. Depending upon your requirement you should choose the broker. Both offer different facilities yet have many things in common. Here are few points that you must consider before choosing a right stock broker:

  1. Minimum Trades: Do check that whether there is any clause that you are supposed to do that many trades to avail some benefits or in some case even penalty is also levied. Thus first make sure that there is no such clause and only then consider broker.
  2. Costs: First and foremost, you should ask this question to your broker that how much commission they will charge. Besides that also ask that in the brokerage that they have offered what all facilities they will give. Most of the brokerage houses give you plans as per your trade preference like Intra-Day Trading and Long-Term Investing.
  3. Other Investment Options: Rather than just stocks, if you’re willing to trade in mutual funds or ETF’s among others, do as your broker whether they provide such facilities or not. The cost of all these services should also be taken into consideration as it may also vary from brokers to brokers.
  4. Research Reports: Now be it Discount Brokers India or a full-service broker research services should be provided. This service will help you take a better decision on your trade and therefore this service shouldn’t be ignored at any cost.
  5. Best Trading Portal: Rather than calling and then initiating your trade ask your broker to provide you a trading platform so that you can trade yourself. Prices change in a fraction of second and hence having software to trade yourself is very essential. Also, check that which broker offers the most user-friendly tool so that you don’t commit any mistake.
  6. Best Exposure: Now for any trader, this is something which matters the most. Therefore, you must ask your broker as how much exposure is he willing to give you on your capital and stocks that are lying with him. Generally, it is 8 to times but you should ask for at least 20 times and if the broker agrees then you can go ahead.
  7. Customer Service: Services can be many but at least basic services should be provided to all irrespective of their volumes and hence you should make sure that you have researched well in finalizing your broker so that you don’t have to regret later.

If all the above-mentioned points are covered then you can go ahead with the broker and start trading.

 

Related posts