How To Choose Right Broker For Investment Account
Stock Market Broker Selecting Guide
You have seen , watched and also read about people who earned good returns and made their portfolios by investment. and Also lots of people are earning daily or at short time period basis by doing trading but here for investment as well as trading you need a investment and trading accounts which you should open first , like bank account and this is operated under a broker. So you need to choose right one for you. Some things you must consider before select any one or may be more to start your investment journey.
Resistered Under Security Exchange Board
First thing you should check about broker is it sholud be resistered under security exchange board of your country.for india it is SEBI (security exchange board of india). So you can check it by visiting their website. sebi.gov.in There are many brokers and their subbrokers available to open your account under them. so be sure that they are resistered and providing good services by following all the rules and regulations set by Security Exchange Borad.
Account Opening Fee Of Broker
This is a normal thing you know it already you need to pay some fees to open any type of account . So look for that broker who is charged less fees and right to open your investing account and this is one time fee you don't need to pay again and again.
Some broker open account at zero balance or may be some give offer occasionally to open an zero balance account free ( zero account opening fee ) for limited time period.
This account opening charges/fee are not much like from 300 to upto 1000 not more than that .
Maintainance Charges Of Brokere
As mentioned above like that some broker open your account free but they take annual maintainance Charges every year. So here you don't need pay account opening fee but need to pay maintainance Charges every year. So verify and make sure
That you will need to pay both Account opening and maintainance Charges or may just maintainance Charges. Ask every questione to your broker and clear all the thing before to open an account .
The maintainance Charges are may be between 400 and 500 per year not more than this.
You need to pay this charges every year even you don't earn no money in profit. So make sure your are able and ready for this from your financial side.
Brokarage Charges Of Broker
Select that broker who is offering more and good facilities and services at less cost. so you can earn some profit when your plan is not fully worked and need to exit quickly because less brokerage charge. Be careful because some broker offers zero brokarage but they take brokerage 10 or 20 rs per excuted order or per trade. Per trade means how many times you will trade you need to pay the charges.
For example:
if you trade 2 times in a day then here you need to pay for each trade. Per trade means how many time you traded in same company or may be in different companies.
Facilities Provided By Broker
Now almost all things in digital forms and investment also from past many years. As your are going to open your investment account and this is for long term so make sure about facilities which has given by your broker to you as you open account under them.
• Make sure that you can easily transfer your fund from bank account to demat account and demat to bank account without any error fastly.
• make sure that application design is simple and working fine all the time ( excepts tech. errors )
• All the necessary options are provided and they work fast and fine like :
• Overall portfolio view
• All types of graph ( candle sticks, bar , line , volume )
• Categories to view how your investment is in different Forms. ( Like your holdings , past two three trade, profit/ loss )
• Detailed Statement options is provided for your investment and trading details like share price, time , quantity brokerage and totals in simple understandable form. So you can easily cross check it .
• Broker is providing some facilities to new ones to start trading in less money and to learn new things about investment . because there is an minimum threshold limit for some brokers. ( for e.g 1000 or more )
• Make sure you can compare different things at the same time as you want to trade so, then you need focus on multiple things and for this the application need to work fast and provide all that different options for a good trading experience.
You can check all the things in their trading appliction or on website as guest login .
Services Offered By Broker
Your are a trader or investor you need to have best service provider to be up-to-date and quickly solve the problems and to find good apportunitie and convert them into profit...so recheck is your broker providing at least some basic good service to their customers :
• There is a service available to solve any problems quickly if any happen manually or accidentally. So you can get the help from them and solve your issue as early as possible . Make sure you can easily contact your broker if any problems is occured.
• Your broker is providing all the rules and regulations and updates in it regularly to you.
• is your broker providing good and right information about investment skims , and all different kind of investments and their types .
• Is your broker provinding weekly updates about market, news to keep you uptodate.
• is your broker alerting you about frauds, transaction details and password to keep their customer safe.
• The broker who you have choosed has updating your statements details right (transaction , trade details, charges ) and providing you time to time.
• Is your broker trying for improvements in their provided services to make them more better and useful.
This all the things you should consider if you want to open an investment account. You can change your broker and can open multiple investment account but then you need to pay charges for each one and that is waste of money. So do some research and find information, visit bseindia And Nseindia website foe basic guidlines and for rules,compare it , ask your friends and family members if they have investment account so know about your broker their services and charges which you think good for you and make sure that you have seen all the things which you need and want during trading.
Reference Site :
• Natinal Stock Exchange
• Bombay Stock Exchange
• Security Exchange Board Of India
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