Think Before Opting For A Broker

Stockbrokers have greatly increased in number,and you have a wide choice to choose a stockbroker from among them. It is not an easy task to choose. It should be clear in your mind what you desire from the broker. Here are given some points to bear in mind before choosing a broker.

Full service or discount broker

The prime difference between full service and the discount broker is that full-service broker will charge brokerage from you as per a percentage depending on your trade value which can be .5% to .9% in some companies while as some charge less than it as they are very cheaper and charge you as per trade. It is that discount brokers will charge you Rs 15 to Rs 20 per trade which is irrespective of the volume of stocks or trade volume. In case you will have to go for atrade multiple times in a month, it is better to opt for discount broker and not a full-service broker.

Online trading versus Offline or Phone trading

Now almost all brokers have begun to give online trading services in favour of their customers. Some of the brokers offer to trade on the phone or sometimes appear physically at the location. In case you feel at ease trading online at your desktop or laptop, you will come to know that almost all of the chief brokers offer that kind of services. Some people are of the view to do trade on brokers’ terminal and need on-call support as they are trading. Make it certain that you are going to choose the broker that offers all the services you want to get from them. You can choose from among Top 10 stockbrokers

Number of times you trade

Either you are investor or trader. The investor is known to undertake trade only afew times in a year whereas trader is a person who will do trade few times in a month. In case you happen to be an investor brokerage will usually not bother you as it will have no effect on your returns. If you are a trader, here brokerage can stand for whether you have made loss or profit in the trade. You must decide what you want to be an investor or a trader before opting for a broker.

The client needs to go for a small survey in his friend circle and check which service provider can be the best service provider considering his requirements. The best option one can check here is the online survey as there are also many sites where one can get such data and go with it accordingly. However, thereliability of such data is a question,but still one can take a chance. There are also some service providers who just offer online accounts and charge much low than that of the offline accounts which can prove much useful to the clients who deal in bulk and want to save a handsome amount as a part of the brokerage charges.