Tips to choose an online broker
For those who provide commission for online trades there is more to it. A lot of online brokerage sites provide the options of free trades. But shopping does have its own add on fees. In your quest for the best brokers in India there are various tips to consider.
Clearly go through the fine print
Brokers are going to charge for many things beyond commissions. This might include handling or postage fees applicable to all trades, but more fees can arise. For example in order to issue a stock certificate it is going to cost you $ 25, and it is delivered on to your hands. Be assured of the fact that any service which you rest above and below your trade is going to cost you considerably. Be aware of what you are going to end up paying.
Zero is not always going to be a zero
There are many brokers who claim that their minimum investment is zero. In no way it would mean that they are going to allow you to trade with zero balance in your account. Once you are about to make a purchase the broker would ask for a percentage. If you have trade options the broker might ask you to cough up a large sum.
Consider the speciality
If you are into trading of mutual funds, securities or bonds, make it a point that the broker trades in those securities. If the broker goes on trading them, you should not be trading them over the internet, and pave way for a higher level of commission. Double check those commissions.
You have to do things on your own
You have to be comfortable to invest on your own. Be it purchasing stocks or undertaking any type of financial decisions that calls for a degree of research. If you feel that you do not have the expertise and do not have time to conduct a proper research it is always better in sticking to full time brokers. You might be paying more but in the long run the benefits outnumber the costs.
Service does appear to be a vital cog in the wheel as far as the concept of online trading evolves. With online brokers you need to check out their ready availability. In the search for a new broker telephone a few prospective brokers for a few times. Do ask them questions about your areas of interest. Once you are not able to get in touch with a broker after a few rings do not get in touch with them. The key is to find out how responsive is your broker to your needs. Have an emergency backup in place. Finally all it boils down to customer support.
Sometimes to confirm traded with an online broker can pose to be a problematic issue. It all depends upon the broker you choose in order to confirm the trade. If you are looking for an instant broker opt for one who can provide confirmation by email or phone.