How do I choose a right share broker ?

We are now living in the 21st century where people use modern technology for trading shares and stocks. Once we used a paper based system for trading stocks and shares, but this tradition has been changed. In India, most of the traders like to use modern technology for trading. A demat account can easily fulfill our basic requirements which are the important and most secure way to hold securities. 

Now it is a question, how to choose best Demat account and share broker in India? It is a complex issue for traders to choose best demat account and share, broker. We need to consider few things, these are:

Cost of the brokerage service

We are living in the most competitive world. There are many brokerage houses which provide us cheap brokerage cost. It is difficult task for us to find out the right brokerage house in India. Traders need to decide which brokerage house they want to open their demat account for investment or online trading. If it is related to trading purpose, then they must bargain with the broker. For investment, investors must select a good brokerage house which will provide a secured demat account. Most of the share brokers will not charge anything in the first year for their demat account. It is free for all traders, but they will charge after one year. Before opening a demat account, they need to ensure it. It is a good decision to verify the yearly demat account charges which are known as yearly maintenance charge.

Check hidden cost

We must understand the brokerage charges on each sell/buy and delivery of shares. It starts from 0.01% to 1%. It is our responsibility to verify this charge applies to one side or both side. Some brokerage house offers a fixed amount of Rs 20 for each trade. So, we need to verify the percentage of the brokerage house. An intraday trader has to concentrate on these expenses. If you purchase stocks for a delivery purpose, then it will hold your stocks in demat account. The stockbrokers charge on a delivery of your stocks which starts from 0.25% to 1%. There is no specific rule for the minimum charge, but it is competitive.

Security of the demat account

Nowadays, most of the share and security traders prefer to use a safe account. Only a secured demat account can easily fulfill their requirements. It helps the traders with long-term investments over the internet which is maintained securely and safely. Demat account eliminates the risk of holding securities and shares in paper-based form. The probability of loss of share certificates and the chances of forgery is nil. It is also convenient for daily share traders so that they can trade anytime, anywhere through their own online demat account. It is true that an opening a trading account in a brokerage house is time-consuming as well as expensive but a demat account reduces our transaction charges, that’s why we don’t need to pay a stamp duty. It helps investors to sell, buy and trade without any delay. Best Demat account helps in early transfers, thus it reduces our transaction costs which is convenient and easy.

Does it risk-free?

A demat account can eliminate the risk of forgery, theft, loss or damage of your physical certificates. It ensures quick transfer of the securities to electronic format. When a trade is approved, the securities are shifted to the customer’s account directly. Traders can easily receive dividends and other financial benefits through this process. It is possible for them to get bonus shares as well as merger and consolidation.  Customers can easily access their demat account information by logging into the account which is easy to retrieve in the specific website. It is possible for them to get instant information from anywhere on their desktop or smartphone. Share traders can enjoy benefits of transaction costs if they don’t participate in share trading in the trading hour.

Easy to use

Most of the share traders like to use the easy system for daily trading. It is another great issue for them. Usually, all brokerage houses use their customized software which is easy to use. Listed clients can easily download it on their smartphone and desktop. We must review to know more about it.

Timing of the trading

It is an important factor in selecting best brokerage house which provides us a good timing for share trading. When we do intraday trading, the stuff of the brokerage house initiates ourselves. Thus we must check the timing of each situation.

Reputation of the share broker

Before opening a demat account, we must verify the reputation of the share broker. There are many share brokers in India where we can easily find out our most efficient one. Due to great completion, some share brokers may act against the law of the stock exchange, it is very unethical and violation of a code of conduct. It is not a good decision to take the support of these share brokers. Hence, we must select a share broker who has a great reputation.

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Great service of the share broker

When we need to change our nominees or address, then we need help from share brokers. Most of the share brokers can’t provide us instant service, that’s why we need to check the service of the share brokers. How quickly they resolve the issues and respond to us according to our requirements?  The services of a demat account are similar to physical trading in a brokerage house, but a demat account works through modern internet technology where stocks and shares are in electronic format.  Investors can start trading by submitting an order through their online trading system. For this task, they need to link both demat accounts with an online trading account. When an order is submitted, the brokerage house will start processing. The stuff of the brokerage house will use the necessary information of the trader’s shares and securities from his demat account. They can get details of the demat account and the availability of securities before the final processing of the specific order. After completion of the order, shares are settled through the demat account. If a shareholder wants to sell shares, he will deliver an instruction to share broker with account details and quantity. After that shares are debited from the demat account and cash is credited to the client’s account.

Below we have compiled a list of top brokers in India after researching 100 of different small & big broker houses in India.

Broker Intraday Brokerage Annual Maintainace Charge Equity Delivery Brokerage Review Open Account
icicilogo-comparebrokersindia-com min ₹ 25 to 2.5% ₹ 700 min ₹ 35 to 2.5% Review Get Best Offer
zerodha-logo-compare-brokers-india USA 0.01% to ₹20 max ₹300 FREE - ₹ 000 Review Get Best Offer
comparebrokersindia-hdfcsecurity min ₹ 25 to 2.5% ₹ 750 min ₹ 25 to 2.5% Review Get Best Offer
comparebrokersindia.com-sharekhan min ₹ 20 to 2.5% ₹ 450 min ₹ 20 to 2.5% Review Get Best Offer
axisdirectlogo-comparebrokersindia min ₹ 20 to 2.5% ₹650 min ₹ 20 to 2.5% Review Get Best Offer

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