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How to invest in Indian Stock Market?

Cheap Stock Broker will facilitate you with the review of trading tools you need to trade or invest in the exchange. There are three main stock exchanges in India i.e. Bombay Stock Exchange (BSE), MCX, and the National Stock Exchange (NSE). The regulation does not allow for any individual to trade directly with any of the three exchanges. For this, you need the services of a broker in India. Now you need to understand the services of a stockbroker in India and which broker to hire. This is a challenge that every trader or investor has to contend with. These three stock exchanges have Different types of Stock brokers. Selecting one that is suitable for your needs may be a bit daunting. To help you with this, we have compiled the following parameters for comparing stock brokers in India.

Different Types of Stock Brokers in India?

In India, different types of stock brokers are categorized based on the investment products they deal in. Generally, there are two types of stockbrokers. These are discount brokers and full-service brokers. Discount Stockbrokers –These brokers deal in few investment products. However, they scale lower than full-service brokers in terms of Broker’s trading cost in India. Full-Service Stockbrokers offer a wide array of investment products. From stock analysis to banking services, full-service brokers have many investment options for their clients.

Which supported exchange does the broker deal in?

Cheap Stock broker works in stock exchanges. You may want to choose your stockbroker based on their level of influence and competence in a certain stock exchange. India has 3 main stock exchanges: NSE, BSE, and MCX. However, for commodity trading, you’ve CAE, ICEX, NMCE, NCDEX, and MCX.

What are the broking charges of stock brokers ?

a. Cheap Stock broker charge a non-refundable trading account-opening fee. The fee chargeable will differ with different stockbrokers and the type of account. b. Trading Account Maintenance Fee (AMC): You can compare broking charges of stock brokers based on how much they charge for maintaining your trading account. This fee varies depending on the broker and type of account. The stockbroker automatically deducts it from your account at the start of every trading year. c. Fees for Opening Demat Account Whenever a Demat account is opened, the broker will charge some fees. Again, the fees payable varies depending on the broker. d. Maintenance Fee for Demat Account. Broking charges of stock brokers is an annual maintenance fee that is automatically deducted from your account.

What Investment Options does the Broker Offer?

Different Types of Stock Brokers offer a wide array of investment products. Check out for any of the following: a. Equity/stock Depending on the stockbroker’s sphere of influence, Cheap Stock Broker can provide you with the opportunity to invest in the listed stock. b. Debt Products: You can invest in debt products like Fixed Maturity Plans (FMP) and Fixed Deposits through stockbrokers. Most stockbrokers offer a variety of accounts. A discussion with India’s Best Stock Trading Platform is important so that you can get the accounts that suit your needs. The brokers usually display the details of the investment products they offer on their pages. c. Initial Public Offers: Brokers can help you to invest in IPOs of companies. IPO is a means for companies to raise additional capital from the public by selling shares. d. Mutual Funds This is an investment vehicle that is considered long-term. Mutual funds can be held in trust for a project that one intends to accomplish in the future. e. NCDs/ Bonds Through a Cheap Stock Broker, you can invest in bearer bonds and treasury bonds. The government usually issues these. It is a means that governments use to raise capital from the public. Bonds usually offer very attractive interest rates. f. Online Commodity Trading: You can trade in commodities through a Cheap Stock Broker. Commodity trading is an area that has risen in popularity in the recent past. It is an alternative instrument of trading/investment aside from the traditional bonds and stocks. Different types of Stockbrokers should be able to guide you on the commodities that are worth investing in. Energy commodities like gas and oil earn some very good returns. You could also consider investing in precious metals like copper, silver, gold, etc. Some brokers deal in soft commodities. Soft commodities are things that are grown like cocoa, corn, sugar, and wheat. Other investment products that you can use to compare stock brokers include Pension Plans, Banking Services, and Insurance Policies

What Kind of Software Features does the broker share with you?

Different types of Stockbrokers should allow their clients to follow their activities. There is India’s best stock trading platform. Check to see whether the stockbroker has the following features: a. Charting for Stock Analysis: Does the broker offer technical and basic charts to help you do a commodity and stock analysis? A reputable broker should offer this feature on their portal. b. Mobile Stock Trading: Some brokers offer India’s best stock trading platform for mobile trading. This is a very convenient feature for investors and traders. c. Online Portfolio enables you to view your profits and losses in an online portfolio. A reputable stockbroker will offer its customer an online portfolio. From this platform, the customer will track how their investment is performing in comparison to the trends in the market. d. Online Demonstration: Reputable stock brokers provide their clients with an online demo of their back office and trading platform. Through this platform, the stockbroker will show you how their office operates and how they conduct their business. The demo should also explain the stockbroker’s regulations and terms of service. e. Computer Trading terminal Find out whether the broker offers computer trading to their clients. It can also be referred to as automated trading, program trading, and robotic trading. Find out whether there is the added Trading cost of Stock Broker for accessing this facility from the stockbroker. f. After Hour Trading: Some traders allow their clients to place orders after trading hours. Such orders are posted on the exchange the very first thing on the following trading day. The advantage of this facility is that you will be able to place your orders when it is most convenient for you. You are not confined to the hours between 9 am and 4 pm. g. Multiple Accounts Stockbrokers who offer three-in-one accounts have a distinct advantage. These accounts include an account for Banking Services, a Demat Account, and a Trading Account. h. Good Till Cancelled(GTC): This facility allows you to place an order which will remain in force until either a number of days elapse, or it is executed. As such, you get to decide how long your order should be active. You also decide on the equity scripts you want to invest in. i. Toll-Free Phone Lines: This facility allows the customer to call the stockbroker free of charge. The broking charges of stock brokers are reversed and paid for by the stockbroker. With this feature, you can call the number given to voice your complaint, comments, or give some specific instructions regarding your account(s). j. Online Live Chat This feature allows for real-time interaction between the stockbroker and the customer. You can use the facility to discuss possibilities in your investment/trading portfolio. k. Email Support This facility enables the customer to get support through email. The stockbroker can use this channel to pass on bulletins and reports. It also provides a good forum for the customer to interact with the stockbroker and discuss how the business is performing. l. 24/7 Customer Care. This feature allows the customer to interact with the stockbroker at any time of night and day. m. Support through a Network of Branches Some stockbrokers have a network of branches spread over several cities in India

What are Broker’s trading cost in India ?

Brokers use their trading tools to do a stock analysis. Based on their findings, they advise their clients on what they need to invest in. Any transaction that the broker does on your behalf earns him/her a commission, also known as a brokerage fee. This fee is automatically deducted from your account at the end of the trading day. You may want to consider the charges of various brokers in terms of the following brokerage fees: a. Cash Delivery Fee When the broker settles a transaction by cash delivery, your account will be charged a brokerage fee for the same. b. Cash Intraday Brokerage The broker will charge this fee to your account for cash buy and sell orders settled on the same day. c. Margin Trading Fee When the trader buys or sells your position in the stock intending to settle in the same cycle, you pay a Margin Trading Brokerage Fee. Other Broking charges of stock brokers that you can use to compare brokers include Securities Transaction Tax (STT), Service Tax (ST), Stamp Duty, Futures Brokerage, and Options Brokerage. Broker’s trading cost in India is a very important parameter when it comes to comparing India’s best stock trading platform. As such, any serious trader/investor should not overlook it.

Market Trends Updates Some stockbrokers regularly update their clients on market trends.

They do so in a variety of ways. These include: a. Publishing daily reports on the state of the market b. Offering their clients free tips on the stocks and commodities to invest in c. Publishing regular reports of the results of listed companies d. Offering their clients alerts on the latest happenings in the market. The investment category of your choice of a stockbroker in India can also be pegged on the type of investor that you are. Different types of stockbrokers perform very well based on the type of client they are handling. They have a leaning towards certain types of clients instead of others. There are three types of customers: a. Active Stock Traders: These have a very active portfolio. They sell and buy on a regular basis, and with high frequency. They are keen on the latest information on the market. They use this information to make their choices. They are also very keen on Broker’s trading costs in India. b. Active Stock Investors: These are not as active as the traders discussed above are. However, they are a notch higher than basic investors are. They are keen on the latest market trends. c. The Basic Investors: Basic investors sell and buy occasionally. For them, the most important consideration in a stockbroker is educational tools. They need stockbrokers who can avail of information to them in a cost-effective and simple manner.