Stock market investing helps you get good returns on investments depending on your portfolio. However, an essential requirement for trading is a trading account and a Demat account which has to be opened with the help of a stock broking company. Several online stock broking companies provide services for investors. Here is a guide to choosing the best online stock broker in India.visit here
The first step in identifying a stockbroker is to find out the background and reputation of the broker. One of the easy ways is to read reviews, complaints raised against the company, and ask existing users about their feedback. One way of gauging the popularity of a broking firm is the number of active clients and market share they hold. Ensure that no cases are pending against them with the regulatory authorities such as the Securities and Exchange Board of India (SEBI) and broking houses or any outstanding payments to be made.
Brokerage and other charges
Stockbrokers are registered with stock exchanges, allowing them to charge commission on trades. There are two types of brokers: Full-Service Brokers and Discount Brokers.
Full-service brokers provide a range of services beyond trading, such as providing stock research advisory and research reports. Discount brokers simply provide the trading facility. The full-service brokers may charge brokerages of 0.3%–0.5% of the delivery turnover and 0.1%–0.275% of turnover on intraday.
If you prefer to save money on brokerages, go for discount brokers who offer additional premium facilities without charging additional fees. Discount brokers do not charge for delivery trades and levy a flat INR 10 or 20 for other trades. The stockbroker you choose should be transparent regarding their charges and list them on their website. Ensure that the broker you choose does not levy hidden charges in trading and investing.
Stockbrokers with expertise in technology will better cater to your growing needs as a client in the form of platform features such as portfolio management. Check the trading platforms provided by the stockbroker and the demo videos on YouTube. The trading platform should be user friendly and designed keeping in mind the investor’s requirements.
The management team should have a strong passion and sufficient experience. A team with a vision will serve you well and offer better services to maximise your returns on investment.
Research and Advisories
A stockbroking house with in-house research facilities will be able to assist you with advisories and stock market trends. Most of the leading broking houses have services that enable you to decide when to buy or sell a stock.
Range of Services Offered
If you plan to trade in futures, options, currencies and commodities, it is better to go for a broking company that provides the entire package under one roof.
If you plan to trade or invest in stocks, Dhan can provide the best services to you as an investor.