A stock broker is an agent who executes transactions on your behalf. They help a client to maximize profit and trims down losses. You need to open an Online demat account to trade in a stock market as a stock broker can be an individual or a firm. It is not only buying or selling of stocks, a stockbroker can go on to perform various tasks. The choice of a stock broker is not an easy task as there are a series of steps that you need to evaluate
Try to figure out whether you want a full time broker or a discount broker
The full time brokers are termed as advisory brokers and are termed as an expensive type. Not only in terms of buying or selling they go on to provide a host of services to their clients be it in the form of fixed deposits etc. Discount brokers do not provide any form of advice and are going to merely execute transactions on your behalf. For a beginner a full time broker might be ideal whereas if you have experience in the stock market a discount broker would suffice.
How are you planning to be involved with your portfolio?
Are you planning to be hands on investor or would you be allowing the broker to take the onus. Considering the needs you have to choose a broker who is readily accessible. They are bound to be accessible as some days could be a lot more hectic than the others. Go on to choose a broker who is available when the market is open.
Take time so as to hop around the best of brokers
When you make a hush decision it could have an impact on your finances. This could even take your years to be recovering. Ideally you might need the best vehicle so as to maximize the profits.
Seek out recommendations from your friends or colleagues
The best way to find a broker is to seek out recommendations from a trusted source. Just ask around people on what are the reasons on them sticking to a particular broker and why.
Check out licensing and reviews
You need to choose a broker who has the best interests of a client at heart. They should not be pushing you towards stocks that would enable them to make higher commissions. Undertake a research about the broker and what strategy they are planning to follow. Even consider the depths of experience and undertake a detailed evaluation about their license protocols.
Last but not the least the choice of a broker is expected to be easy once you are aware of your investment goals or strategies. Ideally both an investor and a client has to be on the same page as far as investing is concerned. Do you plan to be someone who plays safe or fall into the category of someone who likes to be investing in start – up. Consider all these points before you make an investment.