Of late discount brokers are becoming popular as the investors feel that the regular brokers have not been able to suffice their requirements. Discount brokers have taken note of this shift, and a set of mass advertisement campaigns are there to increase their market share. With the number of options on the rise, the choice of the Best Discount Broker in India poses to be a difficult task. Let us outline the tips that would enable you to choose the best discount broker.
This seems to be the number one criteria in the choice of a discount broker. What would be the total cost of the trade? Even for a small investor cost assumes to hold a lot of significance. For example if you are planning to contribute $ 400 a month, and the average cost per trade is $ 30, it is going to cost you a significant amount of money. The general rule to follow is that the trading cost should not be more than 1 %. The first thing that you need to do is to review the schedule of the fees, and find out are there any hidden fees, and then go on to compare it to your investment plan if reasonable.
One of the features common with discount brokers, as they advertise for low, but when you get into details you need to opt for a major investment. Just check out for the minimum requirements and see that you qualify for them.
When you are choosing a discount broker you can avail some money in the form of free trades. Even though if you are undertaking all the trade on the online platform you might have to get in touch with the customer service department from time to time. Do take out some time and find out what other customers have to say about the customer service team and a viable manner to ascertain this is via the social media platforms.
What are the type of investments that the broker goes on to provide? Would there be in the form of stocks or mutual funds? This poses to be an important point of consideration when you are on the verge of choosing a discount broker, though you could be interested in ETFs right now but could look at bonds or other options later on. Check out with a discount broker on what is the type of investments that is available and the costs that is associated with them.
Would the discount brokers provide you with research and analytical tools? In my personal opinion this does not seem to be an important factor, but many investors feel that research tools should be made available to them. In addition also check out with the broker whether demos are available or not. The reason being most of them would be happy to provide you with a set of tools.
The choice of the right type of discount broker is not a complicated task as the series of above steps would enable you to choose one easily.