There has been a grand increase in the number with regard to the stockbrokers. Now people have a wide choice to pick the stockbrokers from, and this task is not as easy as it seems apparent. First of all, you have to decide what kind of services you expect from the stockbrokers. For a trader as well as an investor the stockbroker and his services matter a lot. Hence before going for any account one needs to know what all services the stockbroker can provide in his journey of trading or investing. A few suggestions that you should bear in mind prior to engaging any broker are listed below for your benefit.
- A traditional broker or discount broker: The most important difference between full service or traditional brokers and discount brokers is that the full-service broker will always realize the brokerage regarding the percentage of the trade value which can be between.5% to .9% in some brokerage houses. When it comes to the discount brokers, they are very inexpensive and charge the customer as per trade. There is a number of discount brokerage firms that obtain charges between Rs 15 to Rs 20 per trade and trade volume is not taken into consideration. If it is the case that the investor wishes to trade many times in a month, you should opt for the discount broker and not choose the traditional broker. In this way, you will come to know the benefits of the best stock broker.
- Whether online trading or Phone/ offline trading: It has come to notice that almost all brokers are now offering to their clients online trading facilities. Also, they provide the service of trading on the phone or arrive physically on the location. It depends on you to decide for that suits you the most. In case you feel at ease trading online by means of your laptop or by desktop, it is very common now that a large number of brokerage firms offer such services. Many traders are of the type of investors who wish to do trade on the terminal of the broker or desire to be in contact with a broker on the phone at the time of trading. You must always look for the broker who proffers all the services you are interested in.
- How frequently you carry out a trade: There is a definition about the investors and the traders given in the stock market that can give you an idea about their way of doing the trade. They say that an investor is a person who does trade few times during a year and a trader, on the other hand, goes for trade few times during a month. In case you turn out to be an investor brokerage usually does not dig a hole into your pocket. On the contrary for a trader brokerage means a calculation regarding loss or profit as he is going to pay it every time. Now you have to make out and decide for yourself to be a trader or an investor before picking a broker.