Investing money at the right place is crucial, so is choosing the best brokerage firm. Every stock trader is looking forward to make significant investment decisions which can result in providing impressive returns on investment. As Indian stock market has grown tremendously in the recent times, which has led to a number of opportunities for people to invest in mutual funds or shares, hence providing amazing benefits. For investing or trading, one needs a broker and for acquiring amazing benefits, it’s crucial to choose the right one. There are various factors that will enable you to decide the best brokerage firm for you.
Here are the top 5 factors to select the right brokerage firm for you
With the growing stock market people are provided with a variety of options to choose from. However, this has made the selection to be a little tricky due to the wide variety of options available. One can choose their desired stock brokerage by considering these factors.
Trading costs: The trading cost plays a significant role in choosing the right brokerage firm for you. It directly impacts the profitability of your trades. The trading costs usually involve brokerage, transaction charges, AMC, Demat charges, taxes and more. Brokerage is an important part of the trading costs. Stock brokers generally charge brokerage in 2 ways including:
- Fixed brokerage: Several brokerage firms have a flat/fixed brokerage fee that is charged on every executed order regardless of its trade value.
- Percentage based brokerage: Many stock brokers charge only a percentage of the trade value as their brokerage fee.
While choosing the brokerage firm, one should prefer the ones charging low brokerage as it can benefit you in the long run result in higher trading turnover. Various companies have brokerage plans with slabs where the brokerage charges gets lowers and provides long-term benefits. Apart from this, Demat charges also play a major role in defining the trading costs. Various stock brokers charge differently for AMC, transaction charges and more. Most of them offer lifetime no AMC Demat accounts which bring down the Demat account charges. So, it is advisable to choose a low brokerage stock broker to earn more profit from your trading.
Trading platforms: The online trading software provided by the stock brokers plays a major role in enhancing experience, reliability and user-friendliness. While choosing the best share brokerage company in India, always consider the firms who provide the software having advanced charting features or market scanners. A good brokerage company provides the customers with the trading software on their preferred platform. In addition to this, choose a company who offers you a good mobile trading app, which enables you to analyze trade on the move. While you are doing your research always go through the trading platform reviews of the stock broker and check if they charge a fee for the trading platform.
Margin leverage: Margin leverage is another factor in deciding the best share brokerage firm in India for you. Most of the stock traders give immense preference to the margin exposure facility as it provides the access to trade multiple times over available funds. In addition to this, several brokers also offer margin funding facilities against shares to enable you acquire funding against securities held in your Demat account.
Research capabilities: Reaching out to an experienced stock broker or well-known brokerage firm would mean acquiring professional and dedicated research services where the research team will provide you with trading opportunities, or reading calls for assisting all your queries and providing immediate solutions. A good brokerage company would publish reports on the economy, market trends, IPOs and more. So perform your research to identify the capabilities of stock broking firm.