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Tips to choose a stock broker

Tips to choose a stock broker

Investors feel comfortable to conduct their own research, analyse and purchase stocks, considering ease of purchase provided by the internet. But if you are hard pressed for time and not comfortable taking your own investment decisions opt for the best share broker in India. If you do so there are some tips you need to keep in mind before availing their services.

  • Clearly figure out in advance do you need a discount broker or a full time broker. With discount brokers there is a commission on each purchase but no advice is provided. But a full time service broker is going to provide you with assistance but at a fee. If you are aware what you are looking for it is going to save time.
  • Find out a broker who is easily accessible and in case if they are not available who covers for them. During the busy stock trading days is it easy to reach out to the broker as this proves to be significant
  • Conduct a research. Do shop around several brokers and figure out with whom you are comfortable working with. A rapport you establish with your broker is important. If you are not comfortable with the broker you need to look for someone else. Do not succumb to anyone with whom you do not like
  • Seek referrals- always opt for a broker about whom you have heard nice things. Ask around people on why they have chosen a particular broker.
  • Clearly understand a broker who has your financial goals along with objectives in mind. They should understand the type of investor you are and take time to conduct a detailed research about the stocks you intend to purchase. You can be an aggressive, conservative or an in between investor
  • Find out the strategy that a broker adopts. First and foremost they need to have proper licensing requirements in place. Then find out about their certifications, training and experience. Clearly understand the way by which they approach investment decisions.
  • Are the broker steering you towards investments enabling them to earn a higher commission on your trades. Do opt for a broker who has you investment needs in mind.
  • Understand on how commissions are determined and how much they are going to be. Have a commission schedule in place clearly specifying what amount you would be paying. Any loopholes can be avoided if you stick to an annual fee and not a transaction oriented one. This would prevent the broker by earning unnecessary commissions by soliciting unwanted trades on a client
  • Before availing the services of a broker clearly outline the additional fees or services you are expected to pay
  • Watch out for the deep discount brokers. Always opt for a broker about whom you have hard nice things as they are expected to be reliable. Before committing read the finger prints carefully.
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Once you have started working with someone and if you are not satisfied there is scope of change. You can discontinue their services and choose a new broker.

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