One must know many things before selecting a stockbroker. Be sure that always cheap may not be the best. Decide between cheap and the best. Follow this post to know how to choose the best stock broker.
- Transparent Communication
Always get in touch with a stockbroker who can disclose all details about the brokerage charges including annual maintenance and transaction cost. Never go behind freebies. You can look for firms that will offer some discounts, but no free altogether possible. Understand the hidden charges by having an open communication with the stock brokers.
- Trading Platform
Look for trading platforms that provide advanced information and just not the necessary details. Check for the appropriate tools and know that still few traders make use of the old platforms. Get connected with Top Stock broker in India to get access to the advanced indicators and charts. Always work with a reliable and a stable Order Management System. Stay tuned to get real-time updates. Get access to the trading platform on your PC’s, mobiles, or your handheld devices.
- Eminent Customer Service
Check for brokers in India who offers customer service via phone calls and email. Identify the stockbroking firms that is professionally managed and all the staff has acquired a reputation in handling clients. Check the website and know their services from reviews. Customer support plays a vital role in stockbroking industry.
Understand that the discount brokerage organization charges less than the traditional broking teams. But the price difference is very marginal. Per the law of diminishing marginal utility, it states that after some point in time for every unit change in the utilization, the effect on utility will become lesser. In simple terms, the variations in brokerage rates may not have any benefit for the traders. Just check with stockbrokers who make their business model based on undercutting the competition. You can always check for the platform and services and then decide on the rates.
- Enabled Markets
BSE and NSE, best two Indian stock exchanges. NSE contains maximum volume and dominates the derivative volumes. Few stocks are listed on BSE, but the majority of the companies have got listed on both BSE and NSE. If you trade using penny stocks, then you need to go with BSE. Otherwise, there is no difference in the trading model. Just know that the stockbroker holding a membership with NSE stands a better chance in the market.
As far as the commodities segment is considered, the MCX dominates, and few brokers hold membership with MCX. None of the other exchanges took off.
The five guidelines mentioned above will help you to make a clear decision and choose the right stockbroker. Also, stay updated with the market trends. Be part of many forums and exchange views with like-minded people. Regularly get the news update from media and reliable websites. Go with firms that carry out some market research and just not an execution organization. Get latest circulars from regulator SEBI and stock exchanges about the real-time information.