Stockbrokers are trained with proper registrations and licenses needed to represent the exchange in the stock market. They enable traders to finish trading transactions by putting forth their requests in share markets. They help traders with purchasing and selling financial instruments in the market. For this assistance, they demand some money from the traders called brokerage. The brokerage fee set by different brokers varies, depending on the offerings given by the broker. In this post, you will get information on the services your stock broker should provide and some tips you need to keep in mind during your search for a stockbroker in India:
Key Considerations When Choosing a Stock Broker in India
Stock Brokers Should Share Trading Tips & Research Calls.
Your broker must be capable of explaining the latest market trends and trading tips and provide you with all the necessary information. The best stock broker in India can provide you with all the information related to the trading accounts, portfolio securities, and online trading, including their pros. Your stock broker may not offer all this information if you select a discounted broker. You can get this information from a full-service broker. You can question your broker about his past work on any specific stock or any new trading ideas.
Stock Broker Should Have An Online Trading Platform
You must determine if the brokerage company provides a strong online trading platform for hassle-free online trading. The trading platform must provide a satisfactory user experience with seamless connectivity and a secure payment gateway. The trading platform should be competent for quick & hassle-free transactions. Before signing up, You must first test all the trading platform’s features.
Stock Broker Should Assist You In Financial Planning
Your stock broker must understand your financial goals better and support you in achieving them. They must have proper resources and be well-equipped to provide you with all the needed information to achieve your financial objectives. They must share information on all kinds of investments, from tax-saving to short-term investment options, and assist you in constructing a good corpus.
Stock Broker Should Provide Support In Portfolio Analytics And Corrective Measures
Achieving success in trading and the stock market demands a lot of effort and experience, but sometimes even a professional can make errors. The market can be in a volatile state, or it can make gradual shifts across various sectors. Sometimes your portfolio can run a large mark-to-market (MTM) loss. In such circumstances, your stock broker needs to come to your savings and assist you in surviving such situations. Ensure your broker has sufficient knowledge and willingness to provide portfolio analytics and assist you in recovering your loss-making positions. This is one critical service you must expect from your Stockbroker.
Stock Broker Should Provide Customer Support
While accessing their online trading platform, you may encounter some unknown features. You can expect well-equipped customer support from the firm to assist you in understanding these features. It is also possible to make blunders while online trading. In such cases, your broker must provide you with efficient customer support.
Things You Must Know When Choosing Stockbroker
A beginner should keep a few things in mind while choosing a stockbroker. They are listed below:
Brokerage And Other Key Charges
Stockbrokers are registered stock exchange members and support you in buying & selling orders in the share market for their customers. They charge some commission for offering this facility, a brokerage charge. India has two types of stockbrokers: Full-service brokers & Discount brokers. A full-service broker will give you advisory services, other premium facilities, and the trading platform. These brokers demand high commissions on every trade from their customers run as a percentage of each trade executed. On the contrary, discount brokers give the trading facility. They provide low brokerage and charge a flat fee per transaction.
Select a suitable broker according to your choice and don’t forget to check stock brokers reviewbefore making your selection. Opt for a full-service broker if you want stock research reports, research advisory, and other personalized facilities. If you want to trade or invest on your own and want to do the least brokerage, go with a discount broker.
These days, most investors and traders prefer discount brokers (like Zerodha, Angel Broking, Upstox, etc.) as it allows them to save money which is deducted as brokerage. Additionally, some discount brokerage firms have begun providing the premium features to the clients at no additional cost.
Hidden Fees
There must be ‘no’ or minimal hidden costs while investing and trading. All the costs incurred while transactions must be specifically mentioned. Ask for any hidden costs with your customer care executive before choosing the Stockbroker. You can check their pricing and charges section of the Stockbroker to get information about all the charges that customers must pay. Most stockbrokers provide brokerage calculators on their websites now.
