It’s a great and relevant question, well, does it? The straight answer is NO. Stock trading has more to do with the broker you are selecting and with a good one, brokerage charges are a small price to pay because he’ll be creating wealth for you. We’ll discuss the steps for selecting the perfect broker.
Set-up and Brand spread
Is the broker well-respected and known? What are the credentials, have a look and get a feedback from someone trading around you and their social media pages. See what are they doing to help beginners get started in the market.
What kind of Demat account?
Most traditional brokers offer the 2-in-1 account as it incorporates the DP too. The banks are the ones usually offering 3-in-1 accounts but they are not that big in the research aspect. These days with account linking and UPI, it is easy as pie to transfer money between accounts. Choose the broker who offers the 2-in-1 account opening.
Online Trading Platform of the Broker
Everything’s online and online stock trading has radically changed the game. Now, everyone can delve in the stock market and reap its benefits. For that to happen, you need a great trading platform, so download the trading App of the broker that you like and have a guest tour. See the functionality, the UI and how the whole experience unfolds. A great part of your time will be spend on the platform research and trading so it’s wise to have a look first.
Extras on the Platform
See if there is seamless integration between the website and the APP. Stock screeners, brokerage calculators along with research tools. The research team should provide reliable long and short trading calls and must be on the ball for handling the research queries. They should offer the entire is range of wealth building tools and portfolio management too. Brokerage charges are open with no hidden charges.
Broker Charges or Brokerage
As with any business, for services rendered, fees are charged. The same happens with the broker. Full-service brokers provide the entire portfolio of services. From research to platform to portfolio management, margin trading, loans, mutual funds what have you. For all these services brokerage is but a small price to pay. The brokerage charges should be competitive no doubts, that shouldn’t be the only criterion for deciding on the broker. Find out all the charges the broker is going to charge for different type of transactions and there are no hidden charges whatsoever.
Customer Service
Does the broker have a dealer desk? If something goes wrong with the APP, can you just call the team and get your trade done? How is the customer service team? See if the broker has good risk management. Do they update client via all forms of communication possible phone, mail, notifications etc.
One-Stop-Shop
The intricacies of brokerage businesses have increased and the broker needs to keep up with the future. While we can speak of broker in a generic way as somebody who offers stock broking services, there are many more services like commodities, debt trading, interest rate futures, mutual fund advisory, insurance, loan products etc. If the broker is One-stop-shop all your needs will be met. A beginner might need more handholding than a seasoned investor.
Lastly, is the broker in touch with the future?
This is very important because the nature of the broking business is changing rapidly in India. A broker who still sticks to old methods and ideas may not help you too far down the line. You need brokers who are able to offer you also driven solutions. You need automated advisory solutions for your personal finance needs. You also need brokers to provide you with technology-driven objective options for investment in a spectrum of products. All these will effectively add up to a good stock broker for you.
The broker is you first point of contact when it comes to trading. Go with the one that meets all your needs.
