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5 tips to help you choose a broker

5 tips to help you choose a broker

1) Choose a broker that has technical expertise and is transparent in nature.

The stock broker with the advance use of technology and softwares will always have an upper hand on the client service satisfaction provided by him. The automation eases the functions for clients and smoothens that trading process. So choose the brokerage that provides stable and reliable platform for you to trade. Most brokers often hide the charges under the fine lines of print. Find a broker that is transparent about their pricing policies and doesn’t levy hidden charges without prior disclosures. 

2) Choose a broker that has an effective team service and plays an active role in increasing awareness.

As a trader or investor its important for you to find a brokerage house where in the employees can cater to your needs and operate trades with clear communication and minimal confusion. A lack of good team makes the function of daily trades very difficult in the long run. The market rules and regulations are dynamic and will keep changing from time to time so choose the broker that will give you clear updates in case of changes and will not be ignorant to the core information.

3) Do complete research, review brokerage charges and check the trading platform.

Conduct your own research and also check the background of the stockbroker and their reputation. You can inspect the complaints and client reviews. You can check how they operate on day to day basis. Don’t just look for low brokerage charge, try to analyse the other benefits and customer satisfaction. Having the right broker is a lot more than just having to pay minimum brokerage charges. This plays a very important role in choosing your stock broker. If the trading platform is not easy to use then it hampers the trade growth so its essential for you to understand the trading platform and its advantages being offered to you.

4) Compare the advisory and research facilities available. Check if the fund transfer is easily available.

Many brokers provide free advisory services whereas others charge a nominal fee for the service. Find out if their source of research is truly reliable and is the fee worth being paid for the service that is offered to you. Best investment plans are often diversified based on their needs so choose a broker that will help you to invest in other options like mutual funds, bonds, currency, fixed schemes, etc. The transaction of money should be an easy function. Easy linking facility with your savings account should be available. Ask for the fund transfer process that makes online transfer and withdrawal fast and easy

5) Analyse the exposure/annual maintenance charges and initial deposit required.

If you want to trade daily, it’s important for you to calculate this metric and check the exposure and leverage you get on the day to day basis of doing trade with your stockbrokers. Some houses have annual charges while others have monthly maintenance. Make sure that these maintenance are not very heavy on your pocket. Check the amount you will need to deposit to your trading account before you can carry your trading transactions on the stock market. Margin money is the balance in your account. With full-service brokers, the brokerage percentage highly depends on the margin money you pay upfront.

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