There is no broker who can be termed as
the best broker of India as every
single broker has its own advantages and disadvantages. And thus, it is always
advised that investors or traders should select their brokers based on their
objectives. For example, pure investors who believe in long term investing and
earning dividends and do not do too many transactions in a year, for them any
broker should be okay as long as the broker is providing all those services
that are required by particular investor. But for those who areboth investors
and short-term traders, they can have two brokerage accounts with two different
brokers. The first account can be with the bank for long-term investment and
the second account can be with the discount broker for frequent trading. For
people who are trade intra-day in futures and options, they should go with
discount brokers to save on commissions per order.
As you read on Internet or on popular
stock brokerage sites, you would come to know the difference between full-service
and discount and online brokers, their offerings and their service rates. This
information can be helpful to you in making the right decision of going with a
particular broker but there are certain thumb rules that are listed everywhere,
in books and on Internet, as you select the best broker. The first
rule is the commission which should not bother you if you do limited number of
trades. But if the number of trading transactions crosses certain limit, you
might end up paying a significant amount of money in the form of commissions.
At this time, you should think of brokers who charge less or provide trading
services at discounted rates. The second thumb rule is the type of offerings.
See which broker offers trading tools that matches your requirements. Going
with some broker who is really the cheapest but fails to offer you what you
need doesn’t make sense. So, use your knowledge and wisdom and select the best
broker for yourself.
