| How to choose a stock broker | | | | broker. Check the delivery and intra day charges with |
| To invest in the stock market, you need to have a | | | | the SB and also found out how much other SB |
| DP (depository participant) account and a trading | | | | charge.b) Maintenance charges - Every year, the SB |
| account. These services are offered by a stock | | | | charges maintenance charges in order to maintain |
| broker (SB). Basically a stock broker is an entity | | | | your account. Do check the maintenance charges and |
| through which investors buy and sell shares. There | | | | compare with other brokers maintenance charges. |
| are many stock brokers in the market. Each SB has | | | | This is the most important criteria for choosing a SB |
| its own unique offerings of services. Before you | | | | as the account opening charges is a one time |
| choose a stock broker, few points you should | | | | expense whereas stock trading charges and |
| consider - | | | | maintenance charges are recurring. It is always |
| 1) Know your stock broker - Gather information | | | | advisable to select a broker whose trading charges |
| about the SB - When the brokerage business | | | | are competitive vis-à-vis the other brokers in the |
| started, background of the owner/promoters, how | | | | market. |
| strong is the brand of the SB, was the SB involved in | | | | 4) Stock broker services - Broadly the SB services |
| any controversies. | | | | can be divided into two categories - Online and |
| 2) Account Opening Charges - What is the account | | | | Offline services. You can buy/sell shares by calling up |
| opening charges? Check the account opening charges | | | | your broker (offline) or through online. Online trading |
| by other brokers also. | | | | means you can buy/sell shares through the internet. |
| 3) Stock Broker Charges - A SB charges can be | | | | Check with your broker if they provide both the |
| broadly divided into two main categories - a) Stock | | | | services or not. It is always advisable to choose a |
| trading charges and b) Maintenance chargesa) Stock | | | | broker which offers both the services. |
| trading charges - There are two types of charges | | | | 5) Investment research and stock information - |
| for trading in shares. a) Delivery Charges and 2) Intra | | | | Brokers also provide updates and information on |
| day Charges. Delivery means if an investor takes | | | | stocks. Check the past record of the broker in |
| delivery of the shares, it is called as delivery of | | | | providing excellent tips and information on stocks. |
| shares. Intra day means if the investor buy/sell | | | | Based on their past success stories, you can zero in |
| shares on the same day. Delivery and Intra day | | | | on the broker. |
| charges are different and vary from broker to | | | | |