As a novice investor-to-be, one of the first steps you will have to ingest order to commence your investment journey is choosing an equity broker. An equity broker is better understood if you split the term up; a depository participant/broker that lets you buy and sell equity, better known as stocks. Let’s take a look at five things you can keep at heart while choosing equity brokers.
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1. Your goals.
As with most investments, there is no one-stop-shop solution for nearly anything. Your investment strategy and equity broker choice will vary on the investment goals in store, your investment capacity and exactly how much risk you want to take on. For instance, if you wish to make permanent investments, then you might like to opt for an equity broker that offers minimal account maintenance charges (AMC). Similarly, if you wish to make short term investments or day trade, you may select an equity broker that has lower transaction fees on trades instead.
2. Services and customer support.
A broker is essentially in charge of your funds when you open a Demat account with the equity broker and deposit money. You ought to be qualified to feel comfortable with and confident in your discount broker’s ability to cater to your entire needs, beyond the bare bones. Each investor has some other approach and methods. Be it a discount broker or full-service broker, making certain they will be able to cater to your specific needs is essential. Indian discount brokers are by the bucket load, permitting you a sea of choices.
3. Fees and charges.
While you are in the stock market to make money, keep in mind that your full service or discount broker is too. The main element is to check to ensure that the discount broker is only making money from ways mentioned in their business model, and there are no hidden costs you learn about later. Carrying out a thorough check of your full service or discount brokers policies and charges can save you lots of sour surprises later on.
4. History and reputation.
While the stringent guidelines and barriers to entry set up by the government for Indian discount brokers and full-service brokers decrease the chances of large scale fraud etc, checking the history and trustworthiness of your equity broker will help you ensure that the company has a good record of integrity, when you are trusting them with your money.
5. Account closure clauses.
While you might open your Demat account with a fervent drive, you must also take into account an instance wherein you might no longer need that discount broker’s services and Demat account. Some brokers make the process of signing up seamless, ensure to evaluate the account closure process to ensure it is just as seamless, ensuring you are not trapped in paying your equity broker excess charges.
Indian discount brokers and full services are in abundance, and no matter your requirements, you are more likely to have more than one option to pick from. Surveying all Indian discount brokers and ensuring your equity broker is reputable and customer friendly is of paramount importance. This may go quite a distance in you transforming into a successful trader in the equity markets.