How to select the best broker in India?

Numbers of people entering the stock market is getting increased in a tremendous rate year by year. You have to depend on registered stock market brokers to engage in purchase and sales of different financial products including stocks. With several numbers and different types stock brokerage firms in the country, everyone will certainly look for brokers who can provide the services at affordable rates without compromising on quality. Here are some of the important tips to select the best broker for your trading requirements.

Broker types

There are two types of brokers to select from. They are full-service brokers and Discount brokers. As the name suggests full-service brokers provide a full range of services related to the stock trading process. They charge a certain percentage of cost as brokerage commission for each trade. Hence when you make high transactions, you have to pay high amounts to the broker and these type of brokers belong to full-service brokers.

On the other hand, discount brokers provide no-frill services that are free from providing physical commitments and research reports. They provide the best trading account and trading platform for the investors. Hence selecting the best broker in India depend on selecting the right type of broker based on your requirements.

Account opening

You should have demat and trading account with a registered broker to engage in the trading process. Normally you have to pay the certain cost as account opening charge to the broker. These charges can differ from one to other. There are brokerage firms who charge high account opening charges when some of them provide free account opening. Hence make a good research and select the broker who can provide you with free account along with reasonable charges for related trading services.

Brokerage charges

This is another important factor that makes the broker the best for you. There are different types of brokerage plans that provide limited, unlimited and cost per trade plans. Some brokers charge a certain percentage of the total value as the brokerage cost when others charge a fixed rate per trade irrespective of the value of the trade. You can also find monthly or yearly brokerage charge with a limited and unlimited number of transactions. You have to freedom to select the right plan that better suit your requirements. Keep in mind that brokerage costs are always negotiable.

Trading segments

Make sure that your broker provides a full range of financial products for investment including commodity, equity, mutual funds, currency and more. This provides you with the freedom and opportunity to make the investment on different segments to rotate the total investment amount and to keep it in the safe zone. This helps you a lot in minimizing the risk of loss to rock bottom.

AMC and hidden costs

Check for the annual maintenance cost for maintaining the account and hidden cost if any. Almost all of the brokers charge a certain amount of account maintenance charge and it varies from one broker to another. If you wish to be long-term investor without regular trading, then it is best to select the broker who provides less or no annual maintenance charges. Otherwise, you have to pay AMC on a regular basis.

Now select the best broker in India.
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