Compare Share Brokers in India
Types of Brokers
You will want to understand the differences in brokers as well as the type of investor you are before choosing a specific broker. Two types of brokers include discount brokers and full service brokers.
Discount brokers will 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. Full service brokers provide multiple services apart from buying and selling shared. Many are bank subsidiaries providing a client with a savings account, demat account and online trading facility. Above all else, a full service broker will provide well established personal advice regarding market trends.
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How to choose right stock broker?
While choosing an Indian stock broker, you can think over the following points.
What kind of investor are you?
Before choosing an Indian stock broker you will need to ask yourself this question. If you consider yourself a day trader you will need to invest within a small time duration that can be as short as a few minutes and as long as a few hours. As a day trader you will want to seek out a broker who will offer a flat fee on transactions or offer lower fees. This is closely affiliated with discount brokers. Some well-established India based brokers who will offer you real-time, valuable market research platforms for a lower fee include Zerodha and RKSV Security.
The second type of investor will buy and hold stock for longer periods of time. In this case of an investor there is a strong need to obtain extremely accurate data in a short time period in order to make the best investment decision possible. You will need a broker with a solid execution strategy and one who understands long-term market values, trends and trading patterns. India based full service brokers include IDBI Palsa builder, Motilal Oswal Review, Indiabulls and Geojit BNP Paribas.
Reputation of a stock broker
Save yourself money by researching reputations of stock brokers. You can browse through SEBI and stock investment websites in order to find the right broker. Through reputation research you will be able to see any issues 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.
There are different kind of fees associated with working with a broker. There are account opening fee, transaction fee, maintenance fee etc. Look for low transaction fees if you trade more often, and low maintenance fee if you hold stock for longer duration.
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 knowledge of these kinds of software and market research tools will provide incentives for you to make informed and timely decisions in choosing stocks.
Range of facilities offered
Whether you are looking to invest in IPO or Market Funds choose an investor who allows you to do so. Working together as a team is crucial in choosing a broker to make decisions with your finances.
With the increase in number of stock broker, people have a lot of option to choose from, but still it is not easy to choose. You need to be sure of what is that you want. Some pointers to keep in mind before deciding on the brokers are:-
1) Full service or discount broker: The main difference among them is full service broker would charge you brokerage as a percentage of your trade value(for ICICI it lies between .5% – .9%). while discount broker are much cheaper charging you based on the number of trade. Most of the discount brokers charges between Rs 15 to Rs 30 per trade irrespective of the trade volume. So if you are going to trade multiple times a month, go for a discount broker rather than a full service one.
2) Online trading vs Offline/Phone trading: Most of the brokers have started to provide online trading services to their customers. Some of them also provide trading on phone or even physically at their location. Decide what would be a good fit for you. If you are comfortable trading online from your laptop/desktop, you will find that most of the major brokers are providing that services. There are some people who prefer to trade on brokers terminal, make sure that you check with your broker if he have a terminal near your place.
3) How often do you trade: Whether you are a trader or investor. Investor is someone who trades few times a year while trader will trade at least few times a month. If you are an investor brokerage generally won’t make a big difference in your returns while if you are a trader, brokerage can mean whether you end up making a profit or loss. By that I mean that brokerage adds up for traders.
4) Will you require advice to trade: Would you need financial adviser to trade or would you be trading on your own? If you need adviser, remember to get some historical data of how good the adviser is and would you be comfortable giving him your money. Full service broker generally will have research desk which will send you a lot of recommendations for trading in stocks. Do remember to check there historical recommendations and if it matches your investment needs. Some of the full service broker will even provide you with the service of Relationship manager which will call you a couple of times a month and telling you about the new investment ideas.
5) Do you have access to internet: One more thing to keep in mind while looking at the broker is whether or not it provides call-n-trade service. Because even if you have a smartphone, there could be a chance that you are not able to access your account due to slow internet speed. Then you should be able to call you broker for closing the trade. Most of the broker provide call-n-trade service but ask what is the extra charge for using that service if any. Also some broker say that the provide this service but when you try to call then, the number is always busy. Make sure that you ask them what is the normal wait time to get call-n-trade service.
6) Internet savvy: Newer generation people are tech savvy and don’t mind to trade completely only. If you are like then, discount brokers would be a good fit and if you are someone who prefers to know the face of the brokers, this list would be of little use to you as I have not included any local brokers here. But if you do use local brokers, I would suggest that at least compare their brokerages with some of the new discount brokers to see how much money you are losing by way of higher brokerage.
7) Trading platform provided: One more important thing to ask is what trading platform is provided by your broker and is there any extra charge for accessing that. Most of the broker will provide NEST trading platform free of cost but then charge a monthly charge for access there charting platform or to get access to real time data from there platform. So it is a good idea to get a better understanding of what is being provided by you broker to start with.