Tips to find a stock broker in India

Automation along with advancements in technology have gone on to spread their wings. Even in the field of stock market it has had a major impact. In the last few years the system of open and cry existed that has gone on to be replaced by a computer based system. This even goes on to provide you with the best trading platform. You ought to take note of the fact that the brokers are a middleman between the investors and the customers.

Now the question that might strike you is what is the source of revenue for these brokers. The answer is their bread and butter as brokers go on to earn commissions on each and every transaction that passes through them. The commission levied by them is termed as brokerage. This is basically a charge that is levied by a broker for the services that it renders to their customers. But in this context it has to be kept in mind that it is an Indian stock market that we are discussing. The stock market at a generic level provides an idea on which areas to invest and when. For this they are not going to levy any charge.

This is all about introduction about a stock market, but now comes the most important question on how to choose a stock broker. In order to play it safe in the market you need to choose a broker on the given set of guidelines

  • The first point of consideration is whether the broker is registered under SEBI. If they are registered under SEBI they are accountable to you at every point. In case if you face any issue with a broker you can end up reporting to SEBI
  • Then comes another point you need to be aware about the investment goals along with the services you are on the lookout for. Different brokers go on to provide various types of services that is not going to match up with what you need. Before you go on to choose a stock broker flip through the service details
  • You need to make a careful investigation about the philosophy of the broker that you are planning to avail. An idea on what are the procedures they follow to handle clients is also important
  • Basically there are a couple of brokers in the market. They are termed as full time brokers and discount brokers. The latter end up buying or selling stocks with low commission but they render hardly any form of service to the clients. Whereas on the other hand a full time broker has a potential to discuss investment policies with you. Keeping the viewpoint of both the brokers in mind and considering your strategy you need to formulate a strategy

Last but another important point to think over is the track record of the broker. Here in this regard you can go on to choose the referral procedure. Simply putting it what it means to your family and friends are important.


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