No one is a good trader and investor by birth. Everybody needs guidance. Choosing a right broker is not an easy task and most of the Indians need a broker. First timers get confused in deciding as there are many brokerage firms in India, and if you are also a first timer, make sure you don’t end up making the wrong choice and regretting in future. There are many good discount brokers in India.
It depends on you that what type of broker you need like if you are active, you just need some little help and you can opt for discount broker whereas if you want the full understanding of this business, you need a full-service broker. There are various important factors which one must keep in mind while choosing a stock broker.
Cost/Price: For an active trader, cost matters a lot. You also want to get associated with a broker offering services at lesser prices than others. Everybody knows that to earn a good revenue or profit you have to minimize the fees or charges of the broker. So the first thing, one can compare the commission of the brokers and make sure to compare the basic fee and commission on market trades, limit trades, option trades and margin rates before indulging in any deal with the stock brokers. You can get some good discount brokers in India that provide their services at reasonable price.
Trading Platform: Trading is the most competitive field where every participant tries to have an edge over others. Market information is very important and most of the brokers provide basic trading terminals and expect their clients to make money. Any trader who is active in trends of the stock would always want a powerful or strong trading platform to have a good return. Online marketing is the most common and effective too as it attracts a good number of customers. All the brokers including discount brokers and full-service brokers understand the need of a good supporting system which is a trading platform. The platform gives an edge to the trader over others. One trader needs to be attentive to understand that the nature of competition and behaviour changes from time to time. You have to identify the proper opportunity.
Proper Customer Support: customer support is very important whether it is given offline or online. Staff should have a good reputation if it is a brokerage firm. You should always check out the customer ratings and reviews. It will give you the idea about the services of online sites. It must be their first priority as after all stockbroking is a service.
Markets: NSE and BSE are the Indian’s main stock exchanges. You must be sure about which exchange is better and in which your broker is investing. NSE is more recommended as it has the maximum value. Actually, the difference in these two exchanges is when it comes to penny stocks.
Timely Update: it is very important that your broker tells the latest update from the stock exchanges or SEBI so you can make a decision according to that. A regular discussion should be there if you are paying for full-service brokers. Make sure you are dealing with a broker who is honest as well as transparent in work.