It's always a good idea to look at brokerage firms like Sharekhan, Geojit BNP, Angel Broking and others to open a share trading account, and avoid banks and their subsidiaries. Here are 4 reasons for the same.
Higher broking charges
Brokerage charges and miscellaneous charges for demat accounts at Broking firms are way lower than those charged by Banks and their subsidiaries. In fact, the brokerage charges could be at least 50% lower in some cases. This is for both delivery and intra-day trading in stocks.
Opportunity to save money
Select broking houses like Sharekhan do not currently have account opening charges. This could save you as much as Rs 500-Rs750.
Edge on equity research
Almost all of the broking firms provided research based guidance for buying and selling stocks with thorough fundamentals and technical calls and analysis. Select Banks that provide broking account and trading accounts, do not provide exceptional quality equity research based guidance.
Quality customer care services
In case there are issues with regards to your account, select private broking firms have toll free customer care centres, which address issues very successfully. You do not find this services, especially under PSU Banks and may have to visit the branch for demat and other details.