Posted on 21st Feb 2016
Rated 4.5/5 based on 38 customer reviews
Investors should know the best brokers for trading in India before choosing their option. The following article elaborate top share brokers' offering to their investors. Some share brokers are known for their customer service while others are known for low brokerage or flat fee brokerage charges or powerful trading tools or service offerings. This guide will highlight some of the best brokers for trading in India with tips and advice for selecting a new broker.
What does it cost to do a trade? Does the fee charged based on % of transaction or fixed amount per executable order or monthly charges? To keep it simple, look for brokers that offer flat fee trades or fix monthly charges regardless of the size of the order. Discount brokers are the best brokers for trading in India to meet this requirement.
So in Summary Discount brokers are offering trading facilities with Max Rs 20 Per executed Orders in Equity, Equity Derivatives, Currency Derivatives and Commodities. Services offered by Discount brokers are DIY "Do It Youerself" service, where broker provides you best in class trading platform and mobile app, you need to do your transaction by your onw.
How a investor/customer is treated as a client is important in this competitive market. When client needs help from broker, the broker's prompt response leads him to hold the existing customer. Basic phone, email support is very important with quick and accurate answer from well-trained customer service representative. Other features like online tutorial, online questionnaire, online discussion forum, live chat are ad-on services. Discount brokers are going towards more online help to reduce traffic on email and phone support, which is good in one way to avoid answering recurring problems.
Mode of trading is very important. Most of the brokers are changing their mode of trading from desktop base trading platform to web and mobile app base trading. Still in India people love to use traditional style of call n trade, which is the most easy and fast way of trading. Most of the discount brokers are charging for call n trade service, where full service brokers are providing free call n trade service.
Call and Trade facilities are very important factor, even though users don't need to use this facility frequently, but in terms of unavaiblity of Internet or any issue with your mobile or laptop, you need call and trade facility.
Satisfaction between broker and investor is depends completely on how easy and effective one can do his trading. Best brokers should offer robust and stable tools. As demand of mobile apps and web base trading terminals is increasing, it's very important for brokers to provide low bandwidth, customer friendly and fastest platform. For active traders, execution speed and fill price are very important.
Margin offering from broker is a key requirement for active traders. How much margin one can trade on and what are the terms and conditions? Does your acquired securities are part of broker's margin trading list or not? Does broker provide margin against share in your demat account? One sould know answer to all these questions before heading to choose a broker.
Again, each broker can define their own transaction charges and its very small amount ( Approx 350 Rs Per Crore), but still this makes big difference for active traders.ProStocks is charging lowest transaction charges across all Discount brokers, they are not charging PCM fee which is major differance for Options trader.
A stock broker should offer access to not only trading in equity, but also a strong selection of mutual funds, ETFs, IPO's, Bonds, commodity trading and research reports. Nearly all full service brokers are providing all major services, however discount brokers are only providing trading service at this moment. They are not providing MF, Bonds, IPO's services.
Banks that have brokerage services are the ones who offer 3-in-1 accounts, which is banking, trading and demat account all in one. However all other brokers are just providing 2-in-1 service which is trading and demat account. In such a case how effective banking transaction facility is, how much time it will take to do banking transaction and charges, all need to be considered while choosing a broker.
When you choose your trading or Investment partner, brokerage is not only a criteria. We personally suggest you to check all other factors like customer service, Call and Trade facility, Trading Platform and type of Investment you want to do when you wish to open an account. In Discount brokers we suggest Zerodha, 5Paisa, Upstox, SAMCO & Prostocks and In full service brokers we suggest Sharekhan, Angel Broking & IIFL for your Investment needs.