If you want to invest in the stock market, first you have to choose a stockbroker and then open a Demat and trading account. A stockbroker is a registered member of the Stock Exchange (NSE/BSE) who buys/ sells shares for Investors in the stock market. Since you cannot directly buy/sell shares from the Stock Exchange, you have to open a Demat and trading account through a registered broker for trading. A stockbroker charges brokerage for the share trading.
In India, there are many stockbrokers and with modernisation and digitisation, there are so many online trading platforms today. To choose the best online trading platform in India, here is a checklist for you to follow:
Full Service & Discount Brokers
Before you open a trading account, you must be sure about what you are looking for in the market. If you want – stock advisory facility, margin against your shares, investment and IPO related information, latest updates in the market and portfolio maintenance, then you need a Full-Service brokerage firm that can provide you with all these services after opening your account. But if you are only looking for a low brokerage platform for daily intraday trading, and require no additional services, then you can go for a discount brokerage service platform for your trading. So, choose your broker according to your investment and financial goals.
When you open a Demat and trading account, check for online brokers who allow you to open a free brokerage account and offer low Annual Maintenance Charges (AMC). Many online trading platforms offer free AMC in the first year for investors. Brokers also charge a certain amount of commission for trading. Look for a brokerage firm that offers low brokerage charges for executing your regular intraday trades.
Margin Trading Facility is a service provided to traders/investors to borrow funds available with the broker to buy shares using the rest of the amount from their available funds/shares. For Traders, especially Intraday traders, open your account with a brokerage firm that provides a margin facility.
User-Friendly Trading Platform
Your trading experience depends on the online trading software offered by the broker. The features, speed, UI/UX and advanced tools are a must for your trading experience. So, check the reviews and make sure that the brokerage firm offers a good online trading app with easy and advanced features of trading in it.
Consider a thorough background check of the broker in the market. This involves the history of the brokerage firm and its development over the years. Check for the number of active clients, the actual number of happy clients and their feedback and reviews. You can also visit sebi.gov.in for more information and further clarification on the authenticity of the broker.
In Full-Service brokerage firms, you get a dedicated RM as support. But for Discount brokers, there is no extra facility for an investor/trader. So, before opening a trading account, check the customer support and the service provided by them. Check client reviews and feedback about the customer support received from the trading platform. Also, check the response provided by brokers to their customers and potential new customers in the social media channels.
Thus, look for a trading platform that fulfils your investment and financial goals. Don’t just start investing by what your friends are doing or what someone has suggested to you. Do your research and start investing with the right stock broker.