How To Choose Best Stock Market Broker
Many of us always have this one question that who is the best stock market broker and how to choose best stock market broker, In this article, I will give you a brief idea on this but before that let’s know understand what is Stock Boker
Stock Brokers are like your stock market best friends because
- They help you set up your Trading & Demat account
- They will provide you with the trading terminal either through a website or an app that will help you to see what’s happening in the market.
- They will give you tips or tools to help you decide which shares to buy and when to sell
Now all the Stock Brokers operate under the SEBI guidelines
You need to pick the best stock broker depending on how many people use it how popular that Stock Broker is, who provides the best tools, who charges the least fees.
There are of two types of Stock Brokers
Full-Service Brokers & Discount Brokers
Full-Service Brokers as the name suggests provide you with service.
They help you open a Demat Account, they provide you with on-call service where you can buy and sell shares over the phone, they provide you with daily tips about which shares to buy when to sell and they have offices across the country.
Now for this, they charge you a nominal fee of registration 300 to 500 rupees plus they charge you a transaction fee of 0.3% to 0.5%.
Which means if you are doing 5000 Rs transaction you have to pay them 0.5% of that which is 25 Rupees. If you are doing a 50000 rupee transaction you have to pay them 125 rupees.
This slowly starts adding up once you start trading more
Discount Brokers also set up your Demat account your trading account
They provide you with 3 main advantages
- Easy to use trading platform so that you can buy and sell your share easily online using your Mobile phone on your laptop
- Most of them provide you with investment tool, analytics, an educational guide that help you learn more about stock market investment
- They charge you a registration fee of 100 rs but after that, it does not matter if you are investing 5000 rupees or 500000 rupees they charge you a flat fee of around 20 rupees per transaction the brokerage they charge is very very less.
Remember it is for you to decide which broker you want to choose, whether you want to go to an office and get things done at a higher brokerage or you want the best technology online with the least brokerage.
I personally opted for Zerodha because I like things being done online and right now they are India’s largest Stock Broker in terms of the number of active users.
What gives me the push is that the National Stock Exchange awarded them the best retail brokerage firm in India in 2018.
Money people who lose money in the stock market what is core 4 and 6 in the first few overs they play it like a T20 match but that’s not the thing
Stock Market is a test match and in a test match its all About staying in the game
Stock Market will make you money if you first survive in it long enough to learn it
So the bonus tip is this go-slow open your Demat Account start investing small amounts and learn the tricks of the trade.
People have earned billions in the stock market because they were curious, they were disciplined but most importantly they were patient.
patient Hope now you have got an idea on how to choose best Stock Market broker.