In recent times, the popularity of the Indian stock market has skyrocketed with more and more people going towards it. The charm of getting impressive returns in a comparatively lower period of time is something that lures people from different walks of life. In addition, the fierce competition between different stockbrokers has brought the brokerage charges surprisingly low.
Now when it comes to trading in stocks or another market instrument, the most preferred and reliable way is to hire a stock broker who acts as an intermediary between you and the stock markets. Whether you wish to invest in equity, mutual funds, commodity, or any other financial instrument, a stock broker ensures that all transactions are done in a seamless and valuable manner. This is why it is necessary to choose the best stock broker in India who has a big active client base and offers user-centric services.
If you are looking to pick from the top 10 stock brokers in India, here are 10 proven tips that could help you make the best choice eventually.
- Check reliability of the broker
There’s a large number of stock brokers in the market. Some have been there for decades, while others are comparatively new to the industry. That doesn’t mean these they are unreliable — if they’re managing trades for other people, then they’re controlled by the Securities and Exchange Commission and are members of a self-regulatory body, such as the Financial Industry Regulatory Authority — but it does mean they’re unverified during various stock market circumstances.
A good stock broker would always have enough cash on hand to promise that their client’s trade would run smoothly. It is like a guarantee that regulators look at. Those who don’t have enough cash to hand are more likely to face trading restrictions.
So, during your search for the best stock broker in India, make sure to go through the financial details of various service providers to make the right decision.
- Take a look at account minimums
You can come across large numbers of top-rated stock brokers with no account minimum. But some brokers do need a minimum initial investment, and it can slant toward INR 500 or more. Many mutual funds also require similar minimum investments, which means even if you’re able to open a brokerage account with a small amount of money, it could be difficult to invest it.
- Consider account charges
You may not be capable of averting account charges entirely, but you can positively minimize them. A majority of stockbrokers will charge a fee for transferring out investments or cash, or for terminating your account. If you’re transferring to another broker, that new firm may choose to compensate your transfer fees, in any case, up to a limit.
Most other charges can be avoided by just getting a broker that doesn’t charge them, or by opting out of services that cost additional. Common fees to look out for include annual fees, dormancy fees, trading platform subscriptions and additional charges for research or data.
- Reputation of the broker
One most important step is to check the reputation of the stock broker you are planning to go with. How old the broker is and what its clients have to say about it. You can go through various online reviews left by its existing and previous members that would give you a clear idea about the stock broker.
In the present content, the list of top 10 stock brokers in India includes Zerodha, Upstox, Share khan, Angel Broking, HDFC Securities, ICICI Securities, 5 Paisa and others. You can do your own research and find out the truth.
In order to facilitate easy buying and selling of stocks, stock brokers charge commission also known as brokerage. Due to the cut-throat competition prevailing in the industry, stockbrokers today offer competitive brokerage options that are a boon for small investors.
There are primarily two type of stock brokers – full service and discount brokers
A full-service broker gives advisory support and other high-end facilities along with the trading platform. These brokers charge high commissions on every trade you make as a certain percentage of each trade executed. On the other side, discount brokers deal only in providing the trading service. They offer low brokerage and charges a standard fee per transaction.
Brokerage Charges for different brokers:
- Full-service brokers: 0.3-0.5% of Turnover of Delivery | 0.1-0.275% of Turnover on Intraday
- Discount brokers: FREE for Delivery trades | Flat Rs 10 or 20 for All other trades
- Customer Support
With the advent of the online trading platforms, trading in stocks has become a lot easier these days. But still, sometimes due to any reason, you may need to avail customer service. So, while choosing the best stock broker in India, do pay attention to this aspect.
Check for the reviews before choosing any stockbroker and if the customer service is not up to the mark, then find another broker.
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- Trading platforms
Stock trading without a trading platform is a big mess these days. This is why most of the stockbrokers offer different types of trading platforms to their members. So, before you hire a specific broker, do watch out for the trading platforms being offered. You can watch videos on YouTube to learn more about them. Pay focus especially on the user interface which should be simple and user-centric.
- Advisory & Research services
If you are new to the stock market and need a supportive advisory/ research service, don’t forget to confirm its availability with the broker.
The dependability of the advisory is also necessary to check. The stockbroker should have an excellent standing in advisory and research works. A majority of top stock brokers in India offer Research reports and advisory facilities such as Zerodha, Angel Broking, Sharekhan, etc.
- Fund transfer facility
Make sure that the chosen stock broker provides easy linking of your trading account with the saving account. Search for the fund transfer process in your stockbroker. Online money transfer and withdrawal must be quick and simple. Moreover, also check if there is any fund transfer charges levied by the stockbroker.
- Market Education
Today, most stock brokers in India have a dedicated educational platform where new investors can understand the basics of stock markets that could help them invest in profitable stocks. So, do look at this point before hiring a specific stock broker.