Tips to keep in mind when you are choosing an online broker

Tips to keep in mind when you are choosing an online broker

Investing or to trade via an online platform is worthy as the fees or commission seem to be on the lower side. The difficult aspect is to choose an online broker as there are plenty of options.

Customer service is important

Since most of us are aware that technology advances at a fast pace and there exists a strong possibility of being left behind. Technology bestows a lot of benefits, but there is no greater mishap when things go wrong. In certain cases you might need to get in touch with a customer care team immediately and they are not reachable.

In case if you are planning to avail the services of a broker, get in touch with their customer service team and pose a few questions. Even though you might know those answers still it is better to ask them those questions and confirm the answers. You can gain vital insights about their response style and outline it with your experience.

The popular discount brokers in India are not expected to provide you with any investment advice.

Fees and commissions

A major difference between the various types of brokers is the financial instruments they offer. Each and every product is not going to be of interest to you, so you need to make a list of products that you find appealing. Sometimes your interest may be in the field of stocks whereas in other cases it could be mutual funds. Specify these markets and figure out the commission that is levied by the broker. At the same time carefully note down the commission rates that are levied by these brokers.

In addition to the trading execution fees there are some other fees to be considered. Does the Brokerage Company or firm have annual charges for maintaining your accounts and if you are not doing the minimum number of trades in a month what would be the cost. Do not merely open a brokerage account as the commission rates are the lowest.

Minimum deposit and opening balance

Just check out whether there is a minimum amount needed to open an account and whether you need to keep a balance in the account. Some of the brokers have a small initial deposit whereas in case of others it can shoot up considerably.

This does not seem to be a negative option, but it is one of the ways to help you in the search of an online broker. It would be really frustrating to fill up an application form to find out that you do not have the money to open an account.

To sum it up before you are about to choose an online broker sum up your needs and figure out whether the broker is able to provide them. This would be really important for all the traders to start.

Once the list is trimmed begin the quest for the search of a few online brokers. See to it that they provide the mandatory features you desire.

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