The moment you happen to enter the world of investments choice of a stock broker is of particular importance. It is not possible to start trading till you avail the services of a broker. For some the choice of a stock broker means the lowest brokerage trading account, but it does not work in that way. For a lot of people investing in stocks is not an easy task and they have to rely on websites or research material before they get started.
Take into consideration that your first broker would not be the last one in your life. You are bound to switch brokers once you have a fair understanding of the market. At the same time the choice of a bad broker would ruin your investment experience. The pointers to keep in mind when you are choosing a stock broker are as follows
Research
You have to undertake your own research. Yes you can listen to experience investors, but a suggestion is not to follow them blindly. It is possible to conduct your own research by paying a visit to the website of the broker. A general idea about the fees of the broker can be obtained along with the hidden charges.
The reputation along with track record of the broker
Just check out the background along with the reputation of the broker. It is possible to check out the ratings, reviews and personal comments posted on the internet. This is provided by the existing customers. If you are planning to use the mobile platform, check out mobile ratings that is mentioned on the app stores.
Brokerage along with other charges
Stock brokers are registered members of the stock exchange and they buy or sell shares in the market for the clients. Normally they end up charging commission for this facility.
In the market there are a couple of brokers, the full time along with discount brokers. The former provides you with advice and research based inputs. For every trade that a customer executes commissions are given out on the basis of volume traded. On the other hand discount brokers offer you a platform for you to trade. The brokerage rates are low and a flat rate per transaction is levied.
The key is to choose a broker as per your preferences. If you are looking for some form of advice then go for a full time broker. Just if you want to use the trading facility and are not keen to cough up commission then a discount broker would suffice
Commission
Suppose if you happen to be new to trading then you are going to need ample customer service. This is till the point you have an advisor with you. An easy one is to try calling the customer care number. If it takes ages to answer the phone then do not choose the particular stock broker. If you are looking for a one on one service check out the website of the broker.
