There are about 1100 stock brokers in India and over 30,000 sub-brokers registered with SEBI. Some of the brokerage firms are as old as the Bombay Stock Exchange itself while others are comparatively new but come equipped with latest technology. When you start your hunt for a good stock broker, you will come across several names in the financial newspapers and business channels. You may also get some references from your friends and family members. However, it is important to be very careful in picking up the right stock broker, if you really want to reap profits in the stock markets.
Like company stocks, not all stockbrokers are suitable for all investors. There are many things to consider while picking up a stock broker for yourself. You need to do a thorough check on the market reputation of a stock broker for his honesty, integrity, and accessibility; strength of his past track record; whether he is registered with SEBI and major stock exchanges of India; and whether he has ever been charged with any violations or fraud in the past.Have a look at sure trader for more info on this.
Nowadays, Internet has enabled free flow of information and it has become very easy to compare brokers on various parameters, such as their products and services and commissions they charge, on websites like Selectyourbroker.com. You can also read broker reviews written by users, who have actually subscribed to the services of a particular broker, and can shortlist brokers that you prefer to work with.
Once you have a rough idea of which stockbrokers you like, it’s time to assess what you want from them. Some investors may be new to stock markets and may want fully personalized services from the stock brokers with lots of alerts and SMSes throughout the day. They might want to have personal relationship manager to help them suggest deals and explain them the logic behind it. Such full service brokers may charge you a higher brokerage and may require a certain minimum amount of investment for premium services.
On the other hand, cheap online brokers and discount brokers may suit those who understand stock markets and prefer to do their own research. Investors who have enough knowledge about stock markets to take their own decisions confidently might prefer to work with stock brokers who provide them with one-time payment option and a trading terminal to buy and sell stocks, as and when they like. Online brokers are more in vogue these days, simply because they offer faster services and are conveniently accessible from anywhere. However, one has to make sure that online brokers they hire have a reliable website with good speed and timely processing of transactions.
Knowing your financial goals and trading strategies can help your stock broker offer you better and personalized services. Read online articles about how stock markets work, basic trading terms that are used frequently in the stock markets, and basics of stock trading before putting your money in stocks. You must also read the documents you sign, while hiring a stock broker, carefully and understand what all charges are applicable beforehand. Choosing the right stock broker is crucial to your financial health, so do your research carefully.