HOW TO PICK THE BEST BROKER
There are a number of firms offering broking services today, but how do you get the right one for yourself. MoneyQuin tells you not to get influenced by the marketers and do your own research because the one seeking your account most desperately may not be the best broker for you.
Go for an online broker
It’s convenient. You can access it easily any time of the day; analyse your portfolio, place buy and sell orders, transfer funds easily from a bank account linked to a demat account; look at other products on offer.
Enquire about the broker’s services
Ask your friends and colleagues about the services their brokers deliver. Enquire if they have had issues with the broker’s services and if there was a healthy mechanism to sort it out.
Test its services online
Go to its website and see if it opens easily. If all features accessible to a non-member download easily.
Other modes
Also enquire if the broker offers other modes of service that is if you can’t access net and would like to place an order through phone, will the broker take your order immediately.
Brokerage/other charges
The key thing is expenses you incur in trading stocks or other products through the broker. Also ask about annual maintenance or other charges. Don’t just go by expenses but try and combine the quality of services available with expenses before choosing a broker.
Product offering
Some brokers offer only trading in stocks while others offer other products such as bonds and mutual funds as well although they charge a fee for that. A one-stop-shop for most investment products could be a good idea but try and evaluate your requirements and fees you may have to shell out for those services.
Customer care
Don’t fail to check on the level of their customer care services. Try and call their customer care number and see how long do they make you wait before addressing your concern. A broker not ready to listen to you when you are really annoyed or would want something done urgently is not the right one for you.
Return on cash
You will usually keep some cash with the broker for trade. Try and find if the broker offers some interest on the unutilised cash as some brokers do.
Other incentives
And don’t forget to seek any other incentive brokers might be offering at that point of time. Brokers keep offering goodies from waiver of annual fee to exemption from brokerage for some initial trade. But this should not determine your choice of the broker.
