If you’re in search of the right brokerage account to kickstart your investing journey and are struggling to make a choice, we’ve curated a check list for you to make your decision quicker!
1. Secured Platform and Processes
In today's day and age all the brokers have become digitised and so it is very important to make sure that all data and verification measures are in check and also security and encryption is used to protect data.
Brokers should have the best bandwidth and should be able to punch in your orders to the exchange with no to very minimal glitches.
Also keep in mind that the broker should allow all modes of fund transfer with all the major and leading banks of the country for smoother pay in and pay out.
2. Wide Range of Investment Options
Look for brokers providing access not just to stocks but also derivatives, mutual funds, IPOs, bonds and other new age assets on the same platform. This allows seamless consolidation and management of portfolio, regardless of what you wish to invest in
3. Low Brokerage Charges
Low brokerage charges are usually offered by discount brokers like Zerodha, Upstox and Groww which usually charges Rs. 10-20, irrespective of the monetary value size of the transaction.
These low charges help in keeping the cost low for the stock market beginners and investors. Traditionally a lot of discount brokers would not offer facilities like stock lending, call and trade etc but now they offer that as well!
Broking is a very competitive space and after each broker has gotten into similar charges, the only differentiation left is the software and the experience part.
4. Dashboards, Charts and Analysis
Continuing on the above part, the experience of the application of the broker and the tools and techniques it gives on the application to help the user to make better and informed decisions is a big plus for beginners.
Brokers have now been focusing on providing methods, tools and also creating content which is very beginner friendly to help the retail investor.
Brokers like Zerodha, Upstox offer a range of technical analysis indicators overlays on charts across different time frames along with research reports to identify trading opportunities and entry-exit levels.
While this checklist might still not lead to a quick decision right away since a lot of options might seem similar, the choice boils down to your individual needs.
Based on your investing patterns, frequency, and capital, the choice might become far more clear! For example, if your trading frequency and capital is lower, a low-cost brokerage with minimal add-on features might be optimal.
You can also check platforms like Trustpilot for ratings. And don't forget to ask your friends who use the same broker about their experiences. Getting feedback from people you trust can be really helpful in making your decision.
While this is the only primer you’re ever going to need, investing in the stock market can get confusing. If you want an expert to take that tension off your shoulders, just visit our website by clicking on the button below!