Once we have decided to start trading in stocks, or be active in the capital market, there are many unanswered questions which come across. The most important and primarily asked question is – which broker to choose? The kind of support provide, brokerage charged and many more things. We should understand that in the market there are Full service brokers & discount service brokers also. Now what are the major differences in the two—BROKERAGE CHARGED.
A full service share broker will charge on a higher side compared to discount brokers, and will provide multiple services including personal advice based on market trends. Whereas a discount broker will charge lower brokerage & sometimes fixed brokerage irrespective of the trade volumes.
How to Choose Right Stock Broker in India
Some of the major points to consider before choosing the right broker are as below --
Brokerage: Anything that starts on a positive note turns out to be great. Once we have cut down on our basic cost i.e. brokerage, major burden is taken off. This is one of the most important aspects for long run planning.
Kind of investor : What kind of investor do we take ourselves to be. This is as important as brokerage part. In case we are active day traders, which means more into intraday, then a broker with lowest brokerage charges will be the right choice.
Trading platform : In case we are the ones who like to trade on our own from office or at home, then the kind of platform we are using means a lot.
Time taken for trading account: In today’s e-world technology, where everything is online, we also need to consider the time taken for opening an trading account..
IPO /Mutual fund :Also check whether the broker is proving only the trading account or also service for IPO & Mutual funds. These form an important part, played by the broker