5 Factors in choosing the best brokerage company in India

Published on Saturday, April 13, 2019 by Team | Modified on Sunday, August 9, 2020

5 Factors in choosing the best brokerage company in India

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Choosing the best stock brokerage firm is an important decision for stock traders. There are so many factors that should go into selecting the best share broker. This article discusses various factors to keep in mind while selecting a stock broker and then lists best stock brokerage firms in India for stocks trading.

5 Factors To Consider While Choosing A Top Stock Brokerage Firm in India

Finding the best stock broker in India has become a little tricky with so many choices available in the market. Any stock trader can find himself at sea looking at the options available. Should I opt for an online discount broker or go with a full-service broker? If you too are looking for a top stock brokerage firm in India to open your trading and demat account then you should begin your search by considering the following factors:

  1. Trading Costs

    The trading costs are an important factor while selecting a top stock broker for your trading needs. Trading costs generally involve Brokerage, AMC, transaction charges, Demat charges and taxes etc. The brokerage charges form a significant part of the trading costs. Stock brokers charge brokerage in 2 ways:

    1. Percentage based wherein a percentage of the trade value is charged as a brokerage fee.

    2. Flat, fixed brokerage where a flat fee is charged on every executed order irrespective of the trade value.

    Some brokers, generally full-service brokers, also offer low brokerage charges to customers with the high trading turnover. Their brokerage plans have slabs wherein the brokerage fee gets lower with a higher trading turnover.

    The other important part of trading costs are Demat charges. Check the various demat charges like AMC, transaction charges etc., charged by the brokers. There are many stock brokers who offer lifetime No AMC Demat Accounts which can bring your demat charges lower.

    Please note that trading costs have a high impact on the profitability of your trades. So you must find a low brokerage stock broker in India to earn more from your stock investments.

  2. Trading Platforms

    Another important factor you must consider while choosing the best share brokerage company in India is the online trading software offered by the brokers. Your trading experience depends on the features, speed, user-friendliness and reliability of the software. Does the software has advanced charting features or market scanners? You should also check if the broker is offering you trading software on your preferred platform. Does the broker offer a good mobile trading app to help you analyze and trade on-the-move? So read the trading platform reviews of the stock broker before making a decision. Also, don't forget to check whether there is any trading platform fee charged by the broker?

  3. Margin Leverage

    For a lot of stock traders, majorly day traders, margin exposure is a huge factor in selecting the best brokerage firm for stock trading. Margin exposure facility allows you to trade multiple times over available funds in your account. Some brokers like Kotak Securities offer 50 times leverage for intraday trading in equities. Brokers also offer margin funding against shares facility wherein you can get funding against securities held in your Demat account. So, check out margin exposure facility of the stock broker.

  4. Research Capabilities

    Stock brokers, especially top full-service brokerage firms in India, offer dedicated research services wherein the research team recommends trading opportunities or trading calls to its customers. They also publish reports on the economy, market trends and IPOs etc., that offers trading insights to customers. So check out the research capabilities of the stock broking firm before making your choice.

  5. Customer Services

    Another influential factor while selecting the best stock broker in India. Today stock broker offers customer services through many channels like Online Customer Care, Relation Manager services for trading assistance and branch services. Not all stock brokers offer services through all channels. Online discount brokers offer services through online platforms with no face-to-face interaction. Full-service brokers offer branch services and dedicated RMs but are relatively weak on online customer services. So, you need to check out the customer service channels offered by the stock brokers and match it with your preferences.

How to choose the best stock brokerage firms in India?

  • Choose based on your trading needs

    The best stock brokerage firm is subjective i.e. it is based on individual needs and preferences. What is a top stock broker in India to one may not be to the other? So, begin with listing your trading needs.

  • Shortlist a few brokers who you think best meet your needs

    Identify 8 to 10 brokers who you think have the services to meet your trading needs. As said earlier, not all brokers offer all the services. So if you want to pay a flat fee brokerage then you can easily identify the top 10 brokers in that category. To make your task easier, here's our list of top 10 full-service and online discount brokers in India.

  • Read Broker Reviews

    Don't just hurriedly compare on a few parameters and take a decision. Read in detail about each broker and take your time while making the decision. Please note that traders often stick with a stock broker for a long time and a lot of business is done. So spending some time and efforts will surely help.

  • Now Compare Brokers

    The list of 8 to 10 brokers you created, in the beginning, will get shortened after reading broker reviews. Now you can compare the brokers on various parameters, inquire about their service quality and then choose the best one.

Key Takeaways

  • Every trader must carefully pick a share broker after understanding his needs and exploring various options available in the market.
  • Trading Costs, Trading Platform features, Margin Facility, Research Capabilities and Customer Services are some of the key factors in choosing the best brokerage firm for stocks trading in India.
  • Reading broker reviews and then comparing them will surely help you find the best share broker in India perfectly meeting your needs.

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