How to choose a stock broker Guide for Beginners
This article contains the complete guide for the readers on how to choose their stock broker. Before an individual start trading in the Indian Share Market, one needs to choose a trusted stock broker to put his foots in the Indian Share Market.
This article is beneficial for the investor or traders who have just started as the beginner. Do not think that once you choose a stock broker then you have to stick to it. You can switch your stock broker at any point of time you wish to do so.
There are several factors that one needs to check before selecting a stock broker. Some of them are:
1. Complete Research: Before investing or trading one must conduct their own in-detail research. You can research about the brokers by visiting to their official websites. Go through them thoroughly, their services, their feedbacks and almost everything. This research will provide you a general idea about the stock broker, their charges and the services they provide.
2. Reputation of the Broker: The other factor one must give a check before beginning trading is to know certain background and reputation of the broker. You should look for reviews, complaints, feedbacks by the current users. The users can also use the mobile app to know the mobile app ratings on the app store.
3. Brokerage and other charges: The stock brokers register themselves to the National stock Exchanges i.e. NSE and BSE. By registering with the exchange, a stock broker buys and sell shares in the market for their clients. Thus, a broker tends to charge commission i.e. brokerage charges. In India, there are two types of stock broker i.e. Discount Broker and Service Broker.
The Full-Service Broker avails its customers with several advisory services with the trading platform. Such brokers tend to charge commissions on each trade and thus their clients execute a fixed percentage of each trade executed.
Discount Brokers are the brokers that just provides the trading facility. Such brokers charge less brokerage and charges a fixed flat fee per transaction.
Now it is advisable to the beginners that they must choose a broker that fits in their preference. If an individual is willing to have stock research advisory at best then they may choose a full-service broker. On the other hand, if they just want the trading facility and do not want to pay any extra commission then they must choose a discount broker.
4. Customer Services: Being a beginner in trading and in Stock Market, one needs to have a lot of customer services. One need takes a quick check of the customer service provided. You can know their customer service by calling on their numbers and if they pick the call quickly then they are good, you should go for them else vice versa.
5. Trading Platforms: Before finalising the trader or investor should know about the trading platform provided by the broker. They must know about the key points of their trading platforms and their work performance. The customer can have a look at the demo videos of the trading platforms available on the YouTube.
6. Advisory and Research Facilities: In case the customer is not willing to invest on their own and needs advisory then they can further check for the facility offered by the stock broker. Also, give a quick check on the reliability of the advisory services offered.
7. Hidden Charges: Remember to not pay extra. It means that you must not spend a penny on all the charges incurred while carrying out the transactions. You must always ask for the hidden charges from the customer executive before selecting a stock broker.
8. Easy Fund Transfer: The broker you are choosing must provide an easy account linking facility. You must enquire about the fund transfer process of the company before finalizing the one for you.
9. Education Tools: This is an add-on facility provided to the customers by some stock brokers. For example: Zerodha educates its clients with “Zerodha Varsity” and its various education blogs for free.
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