Compare cheapest stock broker in India 2020
Indian stock market has lots of stockbrokers who are providing the best services, but the question is this, Which is the best and cheapest stock broker in India? The Cheapest stockbroker in India helps the investors in executing the buying and selling of the shares. Stockbrokers are professionals who connect buyers and the sellers of stocks, therefore creating liquidity in the shares market. These professionals trade in stocks on behalf of people and companies and in return for the services they offer, they charge a flat commission or a fee which is some percentage of sale and purchase price of the stock.
The growth and development of the discount brokers available online today have made it very easy for the public to make their investment in the market. But, these brokers offer service as well as expertise which the discount brokers don’t. The stockbrokers undergo extensive training for learning everything about stocks and securities and the changing trend of the stock market. They need to pass a rigorous licensing examination including Series 7. There are different types of stockbrokers and the licenses needed for trading particular securities like commodities.
The stockbrokers suggest their clients about which securities to buy and sell and which securities to hold. Good and knowledgeable stockbrokers vigorously research securities about which they make the recommendations. They spend a lot of time in learning and understanding about the situation of the client for making suitable recommendations. It depends on the individual investors for determining if the commission and the fee they pay to stockbroker is worth it or not.
What is Demat Account & What are benefits of this?
Demat account is the dematerialized account. It is just like the savings account. You need to open the account in some bank for saving money, making cheque payments, etc. Similarly, you need to open a Demat account in a bank for buying and selling stocks. So, it’s like your bank account only where in place of money you have shares in your account.
The dematerialized account contains shares virtually saving you from the worry of holding the shares in the form of papers. Having a Demat account is one of the prerequisites for investing in the stock market. So, just like the bank account helps in keeping the money safe and transfer it from one account to another on your instructions without any hassles, the Demat account helps in keeping the shares safe and transferring them to their next owner as and when you sell them off.
Who offers Demat account services?
Demat services are offered by different banks, stockbroking firms and financial institutions. The broking firms in these cases also play the role of a DP i.e. Depository participants intermediating between depositories- NSDL or CDSL and investor. For opening a Demat account you need to apply to DP and then submit all the required documents. Once you get a Demat account in your name, then you may open the trading account in the same institution with the stockbroker of your choice.
The shares which are bought or sold on your behalf would reflect in the Demat account in your name. Any physical shares previously held may even be dematerialized and then transferred to your account. DP, will provide you your account statement on a regular basis showing a balance of your shares in the Demat account and the transactions during that period.
So, in short, for trading in stocks you need to open 2 types of accounts:
- Trading account with the broker
- Demat account
The fee which is charged by DP for his services are different throughout the industry. Even though the rates might change, they usually undergo the below-mentioned heads:
1. Account opening charges
2. Annual maintenance charges
3. Transaction charges
Apart from the above, the depository participant even charges service tax.
Before hiring a stockbroker for trading in the stocks, you should compare the stock brokers. You will find a number of highly reputable and popular stockbrokers in the market. But some of them would offer some extra service, while others might charge a lesser fee. So it is important to spend some time comparing these stock brokers on different parameters.There are certain compare tools available online which would help you to compare the services of different stock brokers.
These tools help the investors in comparing privileged brokers across different costs related parameters such as the brokerage, opening charges, leverage requirements and the maintenance charges. All these parameters are very important for assessing the structure of cost and pricing related to the value to a particular product.You would get a quick look about all the related details such as advance orders, tools and the presence across different platforms.
You may compare the services related parameters such as the customer car, history, support, uniques, research reports, etc.With total categorization across the products and services parameters, the cost, etc. you may easily filter the stockbrokers according to your needs in one single snapshot.
Parameters to assess and compare the stockbrokers
- Stock trading brokerage fee
- Cash delivery fee
- Cash intraday fee
- F&O segment-futures fee
- F&O segment- options fee
- Marginal trading brokerage
- Other brokerage fees
- Minimum brokerage fee
- Other charges
- Type of account
- Stockbroker charges or fee
- Trading account opening charges
- Demat account opening charges
Availability of Investment Options
- Stocks and equity
- Mutual funds
- Initial Public offers
- Currency derivatives
- Bond or NCD
- Other options for investment
Features of the stockbrokers
- Online portfolio
- Charting for the technical analysis
- Online demonstration
- Mobile trading
- 3 in 1 trading account
- After trade hours orders
- Auto trading
- SMS alert
- Good till canceled
- Support through email
- 24*7 customer service
- Phone assistance
- LIVE chat online Toll-free number
- Assistance through different branches
- Tips, research, and reports published
- Daily market reports
- Free tips on stock
- Analysis of the quarterly result
- News alert
Suitable for the investor’s category
- Active investors
- Casual investors
You may compare the cheapest stock broker India in terms of the above-mentioned parameters. It would help you to shortlist some of the most suitable stock brokers for your investment needs.