Tips on Identifing the best Stock Broker

Fix your objective (who am I?). There are two players in the market.

• TRADER
• LONG TERM INVESTOR

Its waste of your time and energy, if you planning to invest in small amount. Its not going to fetch any thing because even for smaller transactions the costs such as demat and brokerage charges are involved. If you purchase huge volume of units in single transaction, then there will be a consideration and the probability of you paying minimum brokerage rate.

As far as delivery based transaction is concern, brokerage is charged from 0.01-0.15%, depending upon the volume you can offer to the broker. There are a few elements beyond brokerage, that is some charge annual maintenance costs (AMC) for demat account. Look for hidden fees in account contracts within the terms and conditions.

If you wanted to participate as an investor, then you got to see how convenient you are when it comes to money transfer. How you are going to place your order either via web-based trading platform or over phone. Now a day’s online money transfer is offered by most large-sized and institutional brokers. You can also keep a demat account with reputed banks, but annual charges and every time you sell, you have to pay Rs 25 or as a small percentage of the value for using the demat account. It’s appreciated if you open a depository services or demat account with the broker who you have tie-up with, it can also save money.

There are tooooo many brokers in town, so competition is so high that every body is offering discounts, some brokers even offer a limited free brokerage period and also Extra benefits. Check what are you getting free and what you paying for? The more important thing is to look for a broker having a fair idea of risk management system and offers stability to back you up.