It is important to consider trading costs when it comes to any form of investment. What separates the great trader from just a good trader is the ability to compare different trading opportunities to ensure which is the best deal for your money. This is equally important for the stock broker. To venture into the world of stocks it, is quite reasonable to invest carefully on a deal that will ensure the greatest return from the lowest investment cost. There are different factors to consider when choosing a favorable cost effective as well as quality stock broker. It is advisable to weigh all of this factors in order to arrive towards an amiable deal that is not only cheap but also quality and ensure quality returns. These factors include:
Trading Costs
When choosing the appropriate broker in terms of brokerage investment what matters most when it comes to trading costs is the brokerage charged per trade. Other costs to consider would include transaction costs which vary with every broker. Some brokers will not even charge you for transactions. It is also important to note that the transaction charge depends on exchange and transaction segments. It is assumed that in order to arrive at the best cost effective trade broker, one should focus on the lowest brokerage firms in a given industry and compare them in terms of low exchange rates. Another factor that also goes into trading costs when it comes to choosing a cheap stock broker is the amount of broker commission. Fees charged for account opening are also worth to mention here. Usually most newbies will be advised to switch to discount brokers so as to get low cost services. This is because discount brokers offer a simplified pricing structure compared with full service brokers. Discount brokers allow everyone to pay the same amount of brokerage.
Trading Tools.
Choosing a broker with an efficient scalable platform is the first step into the stock market. A robust platform ensures better trading tools with an impressive software or mobile app, stock screeners as well as stock charts. The stock screeners allow you to quickly search for a favorable deal depending on your own defined filters or criteria. A good trading platform should also be user-friendly, fast and adaptable depending on your hardware. Be it you are using a desktop, smartphone or a web version. Considering all these factors makes it difficult to make a balanced decision but again since our article is about comparing the cheapest stock broker here in India . Our decision should narrow down to a cheap yet quality oriented stock broker with the ideal platform. Most Indian stock brokers will recommend you to use the Nest Trader which is available in web version, desktop version as well as mobile app version.
Investment Product.
Given the huge list of investment opportunities it is overwhelming to narrow down your list on any of the investment products stock brokers have to offer. However even as it is overwhelming to find a place to start it is also interesting the numerous viable opportunities you will find to grow your money. The list of products offered by Indian stock brokers is endless. We will therefore highlight a few of the important investment products offered by stock brokers and which of them are more cost effective and viable for a worthy investment. Stocks are the foundational bits of any investment opportunity and they form the basis of the stock market. Buying a stock is another way of saying you have bought a share of a company. It means you now own the company as the rest of the founders and shareholders. Different stock will cost different depending on the stock broker. A given percentage indices of a stock may cost different from one broker to another. It is worth researching the ideal stocks that come with a cheaper price which of course will depend on your financial circumstance. In fact a cheap stock with a high growth index is the most favorable deal any money can buy. Mutual funds is another product offered by stock brokers both in India and Globally. A mutual fund pulls together a pool of funds from different investors and a central broker or manager decides on where to invest the entire pool.
Mutual funds will also be priced differently by one stock broker from the other. The list of investment products is endless but I will also mention index funds and ETFs. Index funds are a subset of mutual funds that are not professionally managed while ETFs are a subset of stocks but unlike a stock they invite a broader index and do not only target a single company. While choosing among these options you also have to consider safety. Inasmuch as you want to cut down costs you also don't want to lose everything. Despite the fact there is no proven way to insulate yourself from risks of market falls and market rises most investors go for diversity where they invest in different investment options. This is however not a cost effective plan for a person starting out and therefore the need to stick to a tight research schedule about market falls and rises in global markets is important for each option. This is also important to prepare you for any kind of market irregularity which stock brokers will not forewarn.
Stock Analysis.
Ample analysis for every investment option is considered a very critical step before staking out for any broker security. A good stock trader will have the time to analyze performance of various stocks in real time and to do so your the stock broker has to provide perfect analyst ratings from different sources, real-time news items and critical market data and information. To choose the cheapest stock broker you also have to consider one that provides dependable stock analysis to avoid unpredictable circumstances in the market. Ensure the stoker profile has appropriate real time data about the Indian market as well as foreign markets, sufficient industry and sector data, historical profiles of company stocks, financial statements as well as insider trading information.
Banking Services.
By this point having considered all previous comparisons. You may have narrowed down you list almost by half of ll cheap stock brokers. Another consideration that greatly impacts your trading performance is the kind of banking services offered by your stock broker. To take this as a major point you should ask yourself. How is the ease to deposit or withdraw money from the stock broker’s platform?How can you deposit funds to your trading account? Is the process cheap and effective? Is the process time conscious since time is important in global trading. If any fees are associated with these methods of depositing and withdrawal which among them is lower? Some brokers will provide a regular trading account to check or save funds more swiftly. If the stock broker offers such a service then you should also consider the fact whether it is paid for or free.
Regulation.
Stock brokers apart from being in business to also make profit some find satisfaction in fulfilling the profit-making dream for other possible. They work in the fulfillment of availing trade to other people.
It is important to therefore choose a stock broker according to their self regulation as well as the regulations imparted on you as one of them when you trade with them. Depending on the missions of every stock broker you will encounter different regulations imposed on each platform. It is fairly important to hold the regulations that positively impact your trading activities and leave out stock brokers who impose hard to meet regulations. If the stock broker is cheap and quality and relevant with accordance to the previous steps this is the last step that leads you to your dream stock broker. You should therefore choose well to ensure brokerage rules do not affect your profit making process but help further your dream of large profit margins.
I just wanna ask, aren't these tips also helpful even if you're from outside of India?