The best broker in India is a difference between success and failure. In case if you are trading in stocks and need to search for one there are various points you need to ponder. Some of them have low rates of commission which might entice you to them, but opt for one that matches your trading styles of preferences. In the end it would be the difference between making and losing money in stock market. Before you search for a stock broker just ask a few questions and identify your trade plan. Some questions you need to ask are as follows
What is the amount of commission you can leave with?
The price of brokerage varies considerably from one broker to another. Full brokers may give you a yearly rate or they are going to charge you 1 % to 2 % of every trade. These changes should not only be considered as an indicator of doing business, but you need to accept them so that it does not interfere with your trading.
What is the amount of trades you are expected to place every month?
The small brokerage fees charge fees if you place less orders every month. There is a criterion for setting up of minimum orders a month. If this bothers you, then you might have to search for another broker.
Do you need to do all things at your own end or do you have to speak to anyone before placing an order?
If you are planning to do it all yourself then a discount broker is what you are looking at. But if you want to discuss with someone about each and every trade then a discount broker is a person you are looking for.
What are the markets you are planning to trade?
Ensure that the broker whom you sign up with is trading in the market you desire
What appears to be your trading style?
If you relying on the services of a discount broker the trading style does not matter, but if you opt for a full service broker then it will matter. Do ensure that your style of trading with the brokers align so that frustration does not creep in.
What is the amount of shares you will be buying at an initial level?
Some brokers go on to charge per 100 shares whereas others have the same charges if you buy 100 or 1000 shares. Figure out on how to match your purchase style with the commission method.
How is that you want the statement, do you want it in an email or a mail?
Most of the full service brokers are going to send you a detailed statement in mail, with copies of individual transactions being mailed. With online discount brokers you cannot expect such a service. Before you sign up it is important to ask such questions.
Last but not the least when you avail their services figure out whether any extra services they are offering.
