Do you want to invest your money? Are you heading towards stock market? Then you will need stockbrokers as your guiding agent. Without them, you will feel lost in the jungle of share market. But, there are lots of brokerage firm in the market who claims to be the best brokers in India. How to find the most suitable one from the crowd? To get the best broker for you, you should need to look for answers to certain questions. Once you get them clear, you can search for the perfect stockbroker for you. Read on to know more-
- What Type of Stockbroker Do You Need?
While you are ready to invest in the share market, you will need a stockbroker. What type of broker do you need? Actually, there are two main types of a brokerage firm is there-
- The full-service brokers
- The discount brokers
The full-service brokers will give you advice where to invest and where not. They will also do the research, analysis and provide reports afterward. The discount brokers are good for new and small traders, especially for the day traders as the commission fee is lower than full-service brokers. There is another kind of stockbrokers who are known as robo-advisor. They don’t charge the high brokerage cost like full-service brokers and also provide certain advice on trading.
- What Are the Fees and Charges?
This is one of the main questions you need an answer before getting into the trading business. While selecting a brokerage firm, you should know about their fees structure and also the payment procedure. There are several brokerage firms where the fees can eat up all your returns. Be cautious about that. You will find brokerage firms that come with hidden fees. If you ever doubt that you should call the customer service and ask questions about the fee structure. This is a must-do whenever you contact a brokerage firm. You should always keep a record of your buying and selling and also the actual amount you are investing. Once you keep track of this, you will know how much commission fees and other charges you are paying.
- What Is the Minimum Amount to Open an Account?
There are many brokerage firms, especially the full-service brokerage firms which require high amount as a minimum to open an account while the discount brokers won’t tell you that. There are also certain stockbrokers who will tell you to maintain a minimum amount balance in your account so that you can avoid any additional fees. For the newbies, who are dealing with little amount, this can be a hindrance. You should look for brokerage firms where you may not need to have an opening balance or the amount is really minimum.
Here are certain questions you should ask yourself and also make some queries to the customer service department of the brokerage firms to get suitable answers. Take your time, do some research and then get into the field.