How to choose the right stock broker?

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 How to choose the right stock broker?
For individuals who have never invested in the stock markets and are planning to do so, the first step would be to choose the right stock broker. Here are a few tips that would be helpful when choosing your broker.

Brokerage

First, look at the brokerage structure of the different broking firms. There are some brokers that offer you as little as 0.01 per cent for trading and 0.10 per cent for taking delivery of shares. Some brokers offer 10 times more, particularly the broking firms set up by established banks. However, there is nothing extra ordinary in the service they provide to pay a whopping brokerage and other charges.

Level of service

Look at the service. Some broking outfits have exceptional service and offer all assistance through call centres. Some of these brokers include Geojit, Sharekhan and Unicon. Most of these firms will send their executives to open an account and complete all possible formalities. You have virtually to only sign the forms and keep your documents ready.

Research backed expertise

Most of the broking firms offer excellent research facilities. However, there are many that do not have these facilities. If you are a novice to investing, equity advice and research would be helpful. It's best to chose a broker who can send you equity research reports regularly, so you can take informed decisions.

Check the trading software and platform

There are many broking firms that have very complicated software for those who want to invest or trade online. It's best to familiarise yourself with the software and choose an investor friendly one.

Not necessary to have the broking outfit close to residence

There is very little need to have the broking outfit close to your home, as everything is done electronically. So, restrict your choice to service, brokerage and expertise.

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Read more about: stock broker
Story first published: Tuesday, February 19, 2013, 8:44 [IST]
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