Tips to keep in mind when you are choosing a stock broker

Most investors are comfortable with research, selecting and to buy their own stocks. All the more so with the easiness  provided by the internet. But time is of essence and if you are comfortable with your investment decisions you can choose the best share broker in India. If you opt to do so there are some tips that you have to keep in mind.

  • First and foremost you have to figure out whether you are availing the option of a discount broker or a full time broker. In case of the former they are going to avail commissions on every purchase but less advice is provided. On the other hand the full time service brokers render valuable advice and assist in purchase and selling of stocks. This is all for a fee and knowing what to pay is going to save a lot of time and money.
  • Ideally you should look for a broker who is easily accessible and in case if they are not available who is expected to be covering up for them. During the busy trading days is it possible to reach a broker as this works out to be of significance
  • Hop around and meet up with several brokers. You should go on to choose a broker with whom you are comfortable. The relationship that you share with a broker is important as they would be handling and investing your money. If you are intimated and not comfortable with a broker you should opt to look for someone else. Do not be pushed into something that you do not like.
  • Work on referrals- it is always suggested that you should work with brokers about whom you have heard good things in the past. Just ask around people who they are the brokers they have gone on to choose and the reasons for the same.
  • You should be on the lookout for a broker who understands your financial objectives and needs. They should figure out the type of investor you are and take proper steps to conduct a detailed research about the type of investments you are looking out for. The key is to figure out whether you are an aggressive, conservative or a medium investor.
  • Get into details about the strategy and background of a broker. You need to ensure that they are properly licensed. Do think about their experience , certifications and training. You also have to figure out how they approach investing. What are their parameters for them to be making an investing decision.
  • Do not fall prey to a broker who might steer you towards investments so that they earn commission on their investing. To eliminate churning a suggestion would be to opt for an annual fee rather than a transaction based fee. This would prevent a practice where a broker goes on to making unwanted commissions by asking you to do more transactions.

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