Skip to main content

How to select a right broker ?

By
Brokerage firms or brokers are the financial institutions who enable traders to buy or sell securities on the exchange. As traders can not place their orders directly on the exchange, a medium is required to do so. Brokers offer traders a platform where buyers and sellers can place and execute their orders.Choosing a right broker is the must. As brokers charge the commission for their services you be very carefully while choosing a right broker for yourself as per your requirements.

Following are some of the parameters analyzing which you can choose a right broker:

1)Fees & Commission

Traders have to compromise their profit if they have to pay huge commission. Before choosing a brokers carefully analyze its commission structure and ask if there are any hidden charges. Traders can choose discount brokers to save brokerage cost as they charge only for every executed orders.

2)Availability

Visit brokers website at peak hours of the day and see if you can access it timely or not. As if it is taking too long to respond it may cause you miss some good trading opportunities. You can also check its links to ensure technical stability.

3)Trading Tools

To trade in a smarter way various trading tools are required. You should first identify what tools are mandatory for you and then see which broker is able to provide you with those tools. These tools may include: fundamental reports, technical charts, margin calculator, option strategy builder, watch list, pre-risk analytics and more. As your success depends on the availability of these tools.

4)Resources

Other then these basic requirements there are some brokers who offer other additional benefits as well. Webinar on trending topics, tax information and other market related information which is important for traders are also offered. These resources helps to keep yourself updated with market . Therefore it is good if your broker offer you these extra benefits as well along with their services.

5)Security level

Online accounts are open to various kind of thefts. Therefore to ensure safety of your data , brokers have multi-layers security system so that your data like PIN number , account details etc are always safe. You must ensure that your brokers is facilitating you secure mode to carry out your transactions.

The most important factor which decide who is a right broker is need of traders. Traders who do not trade frequently for them fees and commission is not a matter of concern , but for active traders it is. As their profit will decrease if they will pay huge brokerage. Just looking at services of brokers is not sufficient to decide it is right for you not. Primarily you should analyze your needs and also look for possible mediums to minimize your brokerage cost.
Labels:

Comments

Post a Comment

Popular posts from this blog

What is MIS, NRML and CNC order types in stock market ?

By
MIS (Margin Intraday Square Off) MIS order types are for intraday traders and need to squared off during the same trading day. It will be activated till that particular trading day only.The biggest advantage of this order type is that while buying shares using it traders need not to pay the entire amount only a margin amount is required to be paid.Because of this feature traders can buy more number of shares with less capital. If in case position is not squared off or converted into other order types by the traders end then it will be automatically squared off by RMS few minutes before the market closes. If you want to strictly trade on intraday basis then you can rely on usage of such order type. As here you need to worry about squaring off your position, it will automatically get squared off before market closes. NRML (Normal Order) NRML order type is used while trading in future market. It is used to carry forward trade orders in derivatives segment. This order type w...
Post a Comment
Read more

What are the advantages and disadvantages of pair trading ?

By
Pair trading is a market neutral trading strategy which enables traders to make a profit under different market conditions.Without learning about the recent market trend a trader matches a long position with a short position in a pair of highly correlated shares, commodities, currencies or etfs. Usually, the pairing is done in shares of companies which belongs to the same industry. Demat account and trading account are required to trade using this strategy like in others. Advantages of pair trading are discussed below: No risk from market direction Direction risk means risk associated with movements in price because of change in market direction. For an example, a short position is exposed to the risk that stock prices may rise.In pair trading, no such risk exists. Because here profit depends on the difference in price changes of two stocks which are in the pair not in the direction in which they move. Limited risk and profit in different market conditions The co...
Post a Comment
Read more

Tips to become a successful day trader

By
Indian share market has attracted various investors towards itself by its good performance and has become an attractive source of investment now. Returns earned on investment in shares by long term traders is higher than investment in other markets and assets. However high capital is required to trade on a long-term basis. Another way by which traders can trade with less capital and earn good returns is intraday trading. Day trading means not holding your position in stocks beyond the current trading day. To trade on intraday basis traders need to have  Demat account  and trading account. The risk associated with this type of trading is high. Some useful tips to become a successful day trader are discussed below: Trade by using a practical approach Movements in intraday stocks are based on the market fluctuations.To earn good profit here traders have to trade on the basis on present market movements.When the market is bullish instead of waiting for large movements...
Post a Comment
Read more