Choosing a stockbroker is one of the most important decisions for individuals who are looking to get into the world of stock trading. Contrary to popular opinion, a stock broker can either make or break your trading experience.
Therefore, it is crucial to select the right stockbroker in India. However, throw in the fact that there are multiple Indian stockbrokers to choose from, the answer may not be as clear as you expect it to be. But don’t worry. This article may just be able to help you out. If you’re currently wondering how to choose a stockbroker in India, here are some parameters that you could consider.
Here are 5 factors that you should consider and analyze when choosing a stockbroker.
1. Type of stockbroker
When it comes to Indian stockbrokers, they can be classified into two primary types - full service brokers and discount brokers. Full service brokers offer a wider range of services which include research advisory and allotment of a dedicated relationship manager as well.
Also, the brokerage that these stockbrokers charge usually tends to be a percentage of the total transaction value. Discount brokers, on the other hand, provide only essential trading services. However, to make up for that, they charge brokerage as a flat nominal fee for every transaction.
2. Fees and charges
As you’ve already seen above, Indian stockbrokers usually charge brokerage either as a percentage of the total transaction value or as a flat fee for every transaction irrespective of the transaction value. The flat fee brokerage concept is more economical if you’re planning to carry out high-value transactions.
Some stockbrokers also charge other fees such as account opening fees and annual maintenance charges (AMC), while others don’t. So, that is something that you would have to take into account when choosing a stockbroker in India.
3. Trading segments on offer
Not all stockbrokers offer all segments for trading. Some might focus only on equity and equity derivatives, while others may offer the entire gamut of segments such as equities, commodities, currencies, mutual funds, and NCDs, among others. If you’re planning on trading on all the segments or a majority of the segments, then it is a good idea to choose a stockbroker who offers all of them.
4. Performance of trading platforms
A stockbroker’s trading platform has to be robust and free from glitches to be able to trade efficiently and successfully. And so, when trying to choose a stockbroker in India, you would have to consider the performance of their trading platforms.
You could start by investigating the performance history of the broker’s trading platforms. This way, you can find out if their platform has been working efficiently or been facing too many outages or glitches. It is a good idea to stay away from Indian stockbrokers who face more than a couple of glitches in their trading platforms in a year.
If you’re looking for a stockbroker that offers you the best services at economical prices, then head on over to Motilal Oswal right now to open an online demat account. Not only are the services of Motilal Oswal one of the best in the country, you also get to open a free demat account as well.
Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account
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