Choosing the Best Stock Broker.
Opening a Demat and trading account is the entry key for all who wants to become a successful investor or a trader in the stock market. This is a very important thing for an investor or a trader has to do before entering into the whole lucrative world of share market. Opening an account with any stock broker is the first step to be taken by a trader or investor before they can place their first order.
So if this is the first things to do then why not do some research, before opening an account with any broker? First of all, you have to understand what type of brokers is available in India and the type which suits your personality.
There are two types of brokers are available in India.
Full-service brokers
Discount brokers
Full-service Brokers:
These brokers provide all the types of services related to share market in which an investor may require. For example, a physical center for doing trading, Help in an opening saving account, demat account, online trading facility, and the full-service broker will also provide research and advise regarding the share market.
Discount brokers:
These brokers provide minimum services to their client, as they charge very less brokerage than full services brokers. Discount brokers do not provide any type of research and advisory facility to its client and they may not have more branches like full-service brokers. As they are packed with full of discounts so small investor can also enter into the stock market and work with them.
How to choose the right stock broker:
Keep five things in your mind before choosing the right broker.
Types of investor you are
Your style of trading plays a big role while choosing an Indian Stockbroker. So before you make selection any broker read this article (What type of trader you are) I have explained in detail about the trading style, however, let me give you an overview here.
If you do not want to hold your position for long time that means you are a short time trader and if you do day trading then you need a broker who can offer you less brokerage and lower fees for other services because you are eager to save and earn money in short-term and as you do your own research, you do not want to pay heavy fee for those services you don’t use. Some broker like Zerodha,5paisa and Tradejini etc are the well established Indian broker who will offer you the best platform to trade at very low cost.
And if you buy stocks and hold for longer periods of time then you are a positional trader and you might need research report and accurate data about the company you invest in. So you probably need a broker who can provide you the best research report and advise and update you about your investments timely. So you can open an account with the broker who can provide you with all the details you require. You can choose from full house broker like HDFC securities, Angel Broking, Moti Lala Oswal etc.
The credibility of a Stockbroker
After you decide which type of broker you need to start with the next step you need to check is the market reputation of the stockbroker you choose from and this research can be done thorough SEBI, you can check if there is any complaint or any issue exists against the broker. Always choose the broker who is neat and clean and more experience with the investor and best in the market.
Services and facility
This is also a very important aspect to look at before opening an account check what type of service they are offering like do they offer you call n trade facility in case you need to trade on the go. Do they provide other types of investment like mutual fund IPO etc if you are looking to invest in them?
Trading Platform
There are the different trading platform used by the different broker so if possible take a demo of their trading platform so that you can understand their capacity to integrate with advanced tools and software available in the market and how often they update their platform to make it smoother and better.
Fees and Charges
Every broker has different fee structure according to its services like account opening fee, maintenance fee, transaction fee, brokerage fee Research Subscriptions fee(if opt) etc. So if you do more transaction then search for a broker who can provide their service at the low transaction and less brokerage fee. If your trades are more often then you should look for the broker who charges the low maintenance fee.
Find the list of top discount brokers in India below and choose the best discount broker that suits to your trading style.
Top 5 Discount Broker
1. Zerodha
It is one of the leaders in discount brokers in India. Zerodha Provides all equity delivery investments at no cost. And Charges a flat fee of Rs 20 or 0.01% (whichever is lower) for intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.
Opening charges: 300
Brokerage: For Delivery it is 0.00 in all NSE ,BSE FNO MCX all segments and Charges a flat fee of Rs 20 or 0.01% (whichever is lower) for all other trades.
2. TradeJini
Opening charges: 300
Lowest brokerage - Maximum of Rs 20.
EquityDelivery - 0.1% or Rs 20/order, whichever is lower
Intraday - 0.01% or Rs 20/order, whichever is lower
Futures - 0.01% or Rs 20/order, whichever is lower
Options - Rs 20/order.
CurrencyFutures - 0.01% or Rs 20/order, whichever is lower
3. 5Paisa
5paisa is India's Premium Discount Broker. 5 paisa offer Pay Flat fee of Rs.10 to trade in Shares, futures and equity.
If you are new and small investor or trader than this broker might suit to you at this stage.
4. Upstox
Upstox (earlier known as RKSV) is one of the leading discount brokers in India.
Opening charges: 300
Lowest brokerage - Maximum of Rs 20.
EquityDelivery - 0.1% or Rs 20/order, whichever is lower
Intraday - 0.01% or Rs 20/order, whichever is lower
Futures - 0.01% or Rs 20/order, whichever is lower
Options - Rs 20/order.
CurrencyFutures - 0.01% or Rs 20/order, whichever is lower
5. FYERS
Fyers is one of the best discount broker in India. Fyers stands for "Focus Your Energy & Reform the Self"
Fyers is known for providing best trading platform to its client.They charge the flat fee of Rs 20 per executed order.And call n trade facility is free for its user.
"If you still have any query regarding choosing the right broker for you Contact Us. We will be happy to assist you."
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