In the Current Era, there are so many varieties of brokers available which gives an option to the investors/traders to select the finest ones as per their own requirements.
BUT PROBLEM IS THERE IS SO MANY TO CHOOSE. WHICH ONE IS THE BEST AMONG ALL?
Generally, Beginners choose their broker with a view point of "Price" and ignore the other relevant factors which results in dissatisfaction later on.
Every broker offering is different. However, with so much demand for online brokers, we’re seeing more new firms enter the space, hoping to capitalize on the surge in retail investors. That can make it especially hard for investors to find a broker that's the right fit for them.
Some investors are willing to pay higher trade commissions for a state-of-the-art platform; others count costs above all else. Some may want to stick with the largest financial institutions with heavy name recognition; others may be more interested in trading through the smaller brokers to find the perfect fit for them.
Therefore, below is the checklist for you while choosing your broker.
1) What's your Preference - Whether you are a Trader/Investor/Both.
2) Pricing Structure - 90% of the people choose their broker on the basis of price which is not a right way. People consider only Annual Maintenance Charges, DEMAT Opening charges & Brokerage. But there are other charges as well which should be emphasize on :
- STT - Securities Transaction Tax
- CTT - Commodities Transaction Tax
- GST - Goods & Services Tax
- SEBI Charges
- Transaction Charges
- Other Hidden charges
Hence, keep on check on other charges also because Brokers won't inform you this.
3) How much Leverage is provided by broker : One should consider the leverage factor because in case of Traders, they need huge leverage requirement.
4) Services they Offer : After Shortlisting your broker, check kind of services they offer like Equity, Commodities, Currency, Mutual Funds, Future & Options, etc. It also depends on your needs like where do you want to invest.
5) Additional features : One should check what extra/additional features your selected broking company is providing after opening an DEMAT with them. Like, Mobile Application, Charts Feature, Terminal Facility (if you are a Trader).
6) Trading Platform : This is an era of technology, every broker has to provide Online Platform to compete in broking business. One should verify whether their Trading Platform is user friendly. You can check the reviews online for the same.
7) Brokers Customer Support : There will be situations which calls for Brokers help. New Investors who are not Tech Friendly, need Quick & Easy Support. One can verify the same from Exchange Website on the basis of number of complaints or reviews on site.
After final selection of broker, Decide ;
Whether you need a broker for Research & Advisory Services?
Whether you need one dedicated person who assists all the time?.
If yes, go for Full Service Broker. Otherwise choose Discounted Broker.
- Discounting Brokers do not provide any guidance when you are in need of it. They are generally IT based automated trading system. They won't listen to your queries, they do not have live customer care desk, in case you have queries during Market Hours.
- There is always a need of guidance whenever you are stuck in market in any position. Therefore, it is advisable to have a good and Experienced Broker as your Financial Advisor.