Brokers charge a certain percentage value of trade which is known as the brokerage charges. There are basically two types of brokers- Traditional or Full Service Brokers and Discount Brokers.
A full service broker is not only involved in buying and selling of shares. It provides multiple services as well. Many of the full service brokers are bank subsidiaries providing a client with a 3-in-1 account that is, savings account, demat account and online trading account into one. If you are looking for well-established personal advice regarding the latest market trends, then a full service broker is the one you should opt for. Discount brokers or Flat fee brokers on the other hand charge a lower fee than a full service broker while providing minimum trading facility at a lower cost. This will generally allow for an investor trust the broker to make fast, real time decisions.
The discount brokers or the flat fee brokers have taken a large share of trading values. They usually charge a fixed amount irrespective of the size of the stock trade. Investors who invest high amounts or who invest multiple times in a day prefer discount brokers as the brokerage charged in flat fee share dealing is significantly low and simple and this make a huge difference in the year end when you see your P&L account.
Choose the right stock broker: Before choosing a stock broker it is important for you to understand what kind of investor you are. Depending on what kind of investor you are or what kind of investment you are planning to make, you should choose the stock broker.
If you are a short term investor that is you invest for a day or for small time duration then you will want to seek out a broker who offers lower brokerage fees. This is closely affiliated with discount brokers.
If you are a long term investor then you will buy and hold stock for longer periods of time. If you are looking for a long term investment then it is necessary for you to obtain extremely accurate data in a short time period in order to make the best investment decision possible. You will then need a broker who understands the market trends and has a strong strategy. Full service brokers understand long-term market values, trends and trading patterns.
Cost Efficiency: There are different types of brokerage fees associated with a broker. There are account opening fee, transaction fee, maintenance fee etc. If you trade often then look for low transaction fees, and if you hold stocks in for longer time duration then you must look for a low maintenance fee.
Platform and market research facilities: Brokerages are increasing capacity to utilize advanced technology through software development and market research tools. Operating an account with a broker who has the essential knowledge of all the different kinds of software and market research tools gives an extra benefit to you. They will provide incentives for you to make informed and timely decisions in choosing the right stocks.
Range of facilities offered: Choosing the right broker to make decisions with your finances is very important. Whether you want to invest in IPO or Market Funds, it is necessary to discuss the pros and cons with your broker and take the right decision.
Reputation of a stock broker: You should always research about the stock broker before investing. You can easily browse through the stock investment websites in order to find the right broker. Top 10 online brokers have the verified information regarding the stock brokers. Through reputation research you can easily know the details of the stock brokers. You can see any issues or complaints that exist against a broker or browse their personal experience working with investors in the market. Choose a broker who is highly experienced and has an up to date knowledge of the inner workings and trends of the market.Find and compare the best stock broker offering the lowest brokerage charges in India at Top10onlinebrokers.com
|Wisdom Capital||Free||0.00 in all NSE ,BSE FNO MCX all segments|
|Zerodha||Rs 200||Rs 20 or 0.01% whichever is lower.|
|RKSV Security||Zero for ISB readers||Five trade free every month. Rs 20 per trade after that.|
|SAS Online||Rs 400||Rs 9 per trade or 0.07% per trade.|
|Trade Smart Online||Rs 400||Pay maximum of Rs 15 per order.|
|TradePlus Online||Rs 499 but it is redeamable||Unlimited commodity brokerage for Rs 99.|
|Ventura Securities||Rs 3500 but it is refundable||Rs 50 to Rs 18 per option Intraday from 1 paise to 3 paise.|
|Broker Name||Opening||Brokerage||Yearly Maintenance||Intraday|
|Angel Broking||Rs 350||0.50%||Rs 300||0.06%|
|ICICI Direct||Rs 975||0.55%||Rs. 500(mail statement)Rs 450 (email)||0.05%|
|Motilal Oswal||Rs 550||.5 – .9%||Rs 900||Buy – Nil Sell – .25% to .4%|
|IDBI Paisa Builder||Rs 700||0.50%||Rs 350||0.08%|
|Bonanza||Rs 600||0.50%||Rs 275||0.05%|
|HDFC Security||Rs 999||Higher of 25 or .5%||Rs. 550||Higher of 25 or .05%|
|SBI||Rs 500||0.75%||Rs 386||0.05%|
|Indiabulls||Rs 1350||0.30%||Rs 450||0.05%|
|Religare||Rs 499||0.30%||Rs 300 (email)Rs 480 (paper statement)||0.06%|
|Sharekhan||Rs 750||0.50%||Rs 441||0.10%|