Envious of your friends making money through stock trading? If it is so, stop listening to their success stories any longer and start making yours. It is reasonable to be a little apprehensive about investing and trading in stocks or equities if you are new to the market. Compare the best brokers in india.
Here comes the inevitable role of a broker into the picture. With an ace online stock broker, things get extremely simplified. An expert broker handholds you and offers the best services in the industry, letting you do very little study about the complex nature of the stock market. But then, the task of finding the right broker is not a cake walk for a person who is new to this whole thing. Here are few things a dummy investor must keep in mind while choosing a broker:
1. Compare Charges/Fees: For many investors/traders, brokerage and other related costs are the most important elements while choosing a broker.
One must consider the commissions and other related fees that broking houses charge as at the end of the day what matters is that how much you have to shell out from your pocket to avail the services.
Best way to find the cheapest brokerage services is to compare the fees charged by the shortlisted brokerage houses. That way, you will know which broker is light in your pocket.
Also, understand the facilities offered. All brokerage houses have at least two plans. One is usually for intra-day traders and the other is usually for long-investors.
2. Research Calls: Most full-service brokerages also offer research services. This allows investors to read analysts reports on companies or sectors of interest or access data on companies. See if you need these services, as these may help you take better decisions on buying and selling stocks and mutual funds.
3. Available Investment Options: Besides trading only in stocks, you might in course of time want to explore other investment options as well. Inquire whether the brokerage company offers investment options in other products also like exchange-traded funds or ETFs, or fixed deposits.
4. Minimum Trades: Yet another important pointer is to check if there is a clause or sub-clause about minimum trades that you will have to do once you open an account with a brokerage. You also need to ask about the penalty for not complying with the requirement as there are brokerage firms in india that charges a certain amount of fees as penalty if an account holder fails to carry out minimum trades.
5. Customer Service & Reviews: As the new-age customer, you should always stay ahead in terms of information, that would enable you to take smart decisions. Today, even when we decide to go for a movie or shopping, we unfailingly read reviews and recommendations.
So why not do the same when it comes to an important decision in one’s lifetime – investing. Look for customer reviews/recommendations online. There are a lot of websites or forums that publish reviews and customer experiences.
6. Presence: There are some individuals who prefer to visit the office to talk to a market expert. If you are one of them, check if the broking house has a local office. Also, if you think you may want to place some orders in person or over the phone via an actual representative instead of a recording, see if its possible. For example, RKSV has offices only in Mumbai and Delhi. But the online facility can be used anywhere.
So, gather all your guts today and take the plunge into participating in the ever growing Indian stock market with the help of a trustworthy online broker.
Check out our Previous Post on How to choose between a Full-service broker & Discount broker.