In the share market, one needs to have a trading account with any of the service providers who are authorized by the SEBI, regulator of the stock market. The trading of any shares is possible in a trading account only,and at this point, one needs to have a service provider who can offer quality services. The share market is full of opportunities as far as the trading is concerned,but only those traders who have knowledge and skills of trading here can flourish and hit the right trade at the right moment.
For making the right kind of investment and managing your portfolio efficiently, you need the services of an experienced broker. The broker guides you through the trading process and even executes the transactions. Many people believe that all brokers are the same and they all offer same services. But that’s not true,and you need to be really careful while choosing the right broker for you. While no broker can guarantee assured returns on any of your investment, it’s the right kind of guidance and quality services that matter.
Here’s a look at some of the points you must consider while choosing a broker:
- Cost
The brokerage fee is important while choosing the brokerage service. You need to weigh the facilities offered against the fee they are charging. The brokerage services usually have two plans,i.e., for intra-day traders and long-term investors.
- Minimum trades
Before finalizing the broker, check if they have any clause of minimum trades to comply with and what’s the penalty if you fail to do so. The 3-in-1 accounts come with the savings account,and few banks might ask you to maintain a minimum balance.
- Other investment options
If you wish to explore other options such as mutual funds with your brokerage account, look for the funds which brokerage has tied up with their services. Ask if the brokerage offers other options such as exchange-traded funds, ETFs, and FDs. Asking these questions from the potential broker will help in choosing the best broker in India. Also, these services will be offered by traditional or full-service brokers only and not discount brokers.
- Research reports
If you are opting for a full-service brokerage service, they will offer research services as well. This will enable the investor in making the right decision by going through the analysis report of the interested sectors and companies.
- Customer service
You can know about their customer services by going through the online reviews on trusted websites and forums which will give a fair idea of the customer support they offer.
- Personal visit
If the broking firm has a local office, make sure you visit the office once to have a clear idea of the kind of services they offer. You can also meet a representative and get all your queries answered.
Keeping these essential tips in mind will help you in choosing an efficient and productive brokerage service which will help in enhancing your portfolio.
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