In the event of you planning to trade in stocks or are on the verge of locating a stock broker there are several questions you need to pose yourself. Some people just go on to avail the services of a stock broker as they offer a low rate of commission or they might be a popular name in stock market circles. But to choose a stock broker based on your trading style eventually could turn out to be the difference between success or failure in this market. In the quest of searching for a broker pose some relevant questions that are illustrated below
What is the amount of commission you can go on to afford?
The choice of the best stock broker in India eventually boils down to the amount of commission you can pay. As part of your trading plan this will enable you to seek the services of reputed online brokers. In case of full time service brokers, the charges tend to be higher whereas discount brokers are on the lesser side. Before the search of a broker you have to figure out what are the level of services you expect from them in the first place.
What is the amount of trades you are expected to place every month?
There are brokerage firms who levy a charge if you do not pay a fixed fee per month. If you are really bothered by such fees you have to search for another broker.
Would I be doing everything or should I need to talk to someone before I place an order
If you are planning to do everything at your own end, then a discount broker is a person whom you are looking to seek. On the other hand, if you need to talk to anyone before placing any trade then a full time service broker is someone whom you need to consider.
Suppose if you are planning to trade during the day then there is no need to consider a full time service broker. But if you are planning to invest in stocks as a long term strategy and not a short term one then you have to get in touch with a full time broker.
Which are the markets you will be trading?
Make it a point that the broker you choose trades in the market that you are looking to trade
What would be my trading style?
If you have the services of a discount broker, the trading style does not hold any relevance, but in case of a full time broker it does have a say. Make it a point that your trading style aligns with the broker so that you are not frustrated.
Last but not the least have an idea about the money you would need to deposit in a stockbroking account. Some brokers may allow you to start off with a minimum amount, but this is not the case with all of them.