If you are looking for Online Stock Brokers and discuss about the traits that makes theme the Best Stock Brokers in India, their Unique Selling Proposition (USP). When we think about investing or trading shares, we understand that it needs to be done through Stock brokers which are members of stock exchanges like National Stock exchange or Bombay Stock Exchange. These stock brokers which acts as important conduits for roping in people or investors.
A stock brokers not only introduce a client to stock exchange but also transact and settle trade on the behalf of investor. A stock broker has come up curve from typical briefcase guy shouting in the pit in 1980x to tech savvy platforms presently. These stock brokers are of various types basis the service levels, presence, reach, trading platform and pedigree.
How to choose a stock broker..
As an individual, it is important to choose the right stock broker before entering the markets. The stock brokers may be selected only is we are more clear on our own requirements. Different Stock brokers operates in the markets with different USPs. Let us see what are these USPs.
In the times where days are getting shorter, the online share trading has proven to be an important parameter. People opt for Online platform to not only save their time but also for convenience to operate. Trading terminals have also improved in last few years. Initially, it used to be typical web based html screen that refreshes every few minutes. Then people switched to exe file where an application get installed on computer. This application was not only faster but was equipped with better features. But now brokers have switched to HTML5 version. This has the features of exe software and advantage of logging in directly on net. So no need to carry your PC or laptop every where. Just access the broker website and start trading in an enriched software. These software are responsive which means that it adjusts to the size of the operating device.
The brokers with strong background are considered to be safer than small brokers. The vintage and client base indicates the stability of organisation and its capability to sustain even during tough times. Few of the brokers have also became point of presence of National Pension Scheme(NPS).
Although brokers can provide max. leverage as per regulatory guidelines but still few brokers have made their niche in high leverage trades. The extra leverage in cash markets or limit against stock are some of the USPs which are very helpful for traders.
While service quality and pricing go hand in hand. There are couple of brokers, also called as Full service brokers, which provides value add services like research reports, RM assistance, training programs and thus charge a higher brokerage rates.
It is important to understand that the brokers who you are giving your hard earned money, how much it may be relied upon. The complaint statistics on the exchange or Regulator SEBI sites shows that how many complaints are pending against each broker. As such you will understand the quality of services but do not forget that the number of complaints also depend upon the size of broker in terms of number of clients.
Size of a Stock brokers
It is again important to gauge the size of brokers as a large size of clients indicate better service and higher safety. It is more safe to rely on a brokers already large in size or growing to be in business instead of small time brokers which could be fly by night operator. Also large number of clients suggest a robust mechanism of execution and service. Online trading platforms clubbed with call center also acts the same way where any issues may be resolved online or over the phone. The payment is done through online bank transfers.
But still the question is how to choose the Best Stock brokers in India
So it is your individual question has to be an individual answer. The selection purely depends upon your requirements and the skill levels. While entering the markets you need to execute small deals, a lot of guidance and definitely big support from your broker. Unfortunately, RM assistance is utmost required here however with very less revenues, there is very less chance for you to get the same. A good user interface with simplified user experience may solve your issue to certain extent. At a level when you become a lesser frequent investor and start investing in stock markets every now and then, it is the time when you need research reports about markets be it on economy, industry or any specific stock or scrip.
A broker with value add services like research and RM assistance will enable you to read and discuss more. Such discussions will improve your decision quality and let you take calls with more success factor. (Remember there is nothing like 100% accuracy in trading decisions). With increase in frequency and routine tracking of market, it becomes little easier to capture even small movement in markets or share prices. This is the time when investors become traders and captures even the small movements or daily fluctuations in markets.
There is always movement in stock prices due to several factors and as per DOW theory they are termed as Primary movements, Secondary movements and Daily fluctuations. Now, your investing or trading behaviour will ascertain your need for assistance, research and that defines the cost you pay for it. Definitely you have to pay more for getting better services.
Coming back to Broker selection, Primarily, there are two types of brokers i.e. Full service brokers and Discount brokers. Full Service brokers are the one that provide value add services along with Dealer or RM assistance. Their main source of income being brokerage, the cost of value adds given is added to the brokerage rates. Normally they charge brokerage as percentage of trading turnover or volumes. The brokerage charges for delivery based transactions are generally 10 times that of trading transactions. The average band of rates remains between 0.01% to 0.05% and for delivery transactions, it is 0.1% to 0.5%.
Discount brokers offers deep discounted rates for executing transactions through online share trading platform. The charge structure are fixed per trade or fixed per month. They charge such low rates as they do not provide any value adds and provide basic services and self operated platform and tools for trading.
In a newer trends, we can see discounting for investors even. Few brokers now provide lifetime AMC at very low rates investing in Stock markets. This means instead of low brokerage rates ( which does not have any significance for an investor), they minimise other charges like Account Opening charges, Annual Maintenance Charges, etc.