The choice of the right stockbroker is of utmost importance as choosing of the right stock. You need to ensure a proper research is conducted. Once you educate yourself about stocks and work on a strategy you might be itching to invest in stocks. But you need to choose a stock broker. A point to consider is that not all stock brokers are the same and there is no one size fit for all.
Definition of a stock broker
Basically a stock broker is an individual who buys or sell securities in a stock exchange on behalf of a client. The general onus of an investor when they are choosing a broker is to opt for one with lowest brokerage in India. With the emergence of the internet the role of the brokers has undergone a massive change over. By online trading you can purchase stocks at a low rate of commission.
In the days gone by brokers were restricted to the elite class of society and they had access to most companies in a stock market. But with ever increasing use of technology and emergence of discount brokers, the brokers had to modify their role. Of late they have become more of an advisor to clients. They work hand in glove with clients to develop a portfolio and go on to charge a steep fee on every step. Discount brokers provide a viable option to do it yourself and this is at a much cheaper rate.
Questions to keep in mind when you are choosing an online broker
As part of your investing career the choice of the right broker is of utmost importance. Many brokers are out there in the market who offers a variety of services. With such a lot of options available it becomes imperative to ask a few questions before you go on to choose the right broker
First and foremost you have to figure out whether you need a discount broker or a full time service broker. By answering this question you pick a direction on where you need to go. Once if you are able to pick stocks on your own this possess to be a major benefit. The benefit of choosing stocks accrues you save reasonable money on churning out commissions.
Now be it a full time or a discount broker there are going to be times where you might need to get in touch with them. The brokers might not answer your calls promptly or make you wait for a long time. Before you go on to link up with a broker check out the response ratio of their website during peak hours. Just flip through some of the links to find out that there are no loopholes. If you see red flags this is a signal that you should continue to look ahead.
Lastly you need to figure out whether there are any minimum deposits associated with a broker. Though the charges might be less but you have to keep a fixed sum of money.