If you are new to the world of stock broking, then this is the right place for you. Anyone can earn big returns with stock trading. It’s all about taking the right decision at the right time. In case your decisions are wrong, then you may also lose a big amount of money. Besides, you will also lose your time.
So when making the selection of right broker, you should try and avoid making following mistakes.
- Making the selection of a broker only on recommendation basis. Make the selection according to your needs.
- Avoid getting driven away by gimmicks and campaigns
- Don’t completely rely on the broker data, perform your research very well
Even before making the selection, you have to decide if you are investor or buyer. As a trader, you may be more interested in generating high returns and low brokerage fee. A number of brokers may even offer you with services in exchange for a fixed fee. They may also charge you with a fee that is fixed on a monthly basis. In case you are an investor, then it is certain that you may be looking around for long-term investments. In case you want to act as both, then it is obvious that you may think of earning high returns in the long term.
Let us look into few tips that will help us make the right selection of broker.
You may find some stockbrokers who shall provide you with all possible assistance in exchange for their services. These are full-service brokers who were also very much common in stocks trading. Presently discount brokers are more preferred in stock markets. One main feature of discount brokers is that they will never try and provide the clients with recommendations for trading.
If you are looking around for best stock broker in India 2018 who is affordable, then discount broker are best options. Search online and you will come across hundreds of discount brokers who are cost effective and affordable.
This is the amount of money you may have to invest when opening your account with a discounted broker. The initial charges may not be same for different brokers.
Brokerage fee or commission
This is also one factor that may vary from one broker to another. In general, this amount is charged as commission on the overall trading performed. Very few brokers may offer you with a monthly charge that is fixed. Before selecting the one you have to do all calculations of the amount you shall be paid to the broker or else you may end up paying more brokerage fee.
This charge has to be paid to the broker on fixed term for maintaining your account. This charge may in fact not be same for different brokers. In case you want to make use of discount broker in the long run, then you have to look for one who is either for free or willing to charge you less. This will eliminate the need for you to pay the maintenance fee every time.