Investing in stock markets invites you to avail services of a stock broker. Without availing expertise of top 10 stock Brokers in India you will be stranded. If undertaken in a proper manner returns in stock market can be considerably higher than the other investment options. The choice of a particular type of stock broker could be a difficult task as there are plenty of options in the market. A wrong choice can lead to wastage of money, time and not forgetting about money making chances. When you are about to choose a stock broker you need to avoid stopping these 3 mistakes
- Opt for a stockbroker who is chosen by your friends or family. The needs of every investor are different and you need to choose one that fits your requirements.
- Do not fall into the trap of advertisements as seldom they can be a gimmick
- Do not blindly believe on what the broker relies; instead rely on the facts and figures before you take a decision.
Before you make a decision on the choice of a stock broker you need to evaluate whether you are an investor, trader or can be classified into both of them.
In the event of being a trader and indulging in regular trades, you need high performance trading platforms with low rates of commission. Some brokers go on to levy commissions on the trade you execute or a fixed brokerage amount that is going to work in certain cases. Considering another side of the coin if you are an investor and looking for the option of long term investments, you need to be aware of the brokerage rates, than the predictable feature of tips along with research. But if you are a trader and an investor seldom you will be trading on the basis of market momentum and trust me your expectations are bound to be higher.
The broker types
Till the early part of the 2000’s the concept of brokers was one dimensional in India. Nearly all the brokers conducted trades on behalf of their clients and in return availed a commission on the basis of each and every trade. More in terms of transaction value, higher the amount you had to pay to a stock broker. These are brokers who were given the name of full time brokers.
In the last few years, a new concept of brokerage model was launched in India. One of the prominent names in the industry started off with the launch and the results were there for all of us to see. This is the concept of discount brokers as they are not going to provide you with any advice or services. In fact they are simply going to execute the transactions on your behalf. A trading account and a platform is provided to the clients and they can execute their own dealings. This works ideal for an investor who has reasonable experience in the market and is comfortable with their own research modules.