STOCK Queries

Which stock brokers to Approach to?

---All of us us who are interested to invest in the market have this question in the mind.And its so important to know your broker before you invest in the market.
At first ,you need to keep some basic knowledge, before deciding which broker to approach to...

I) Full service or discount broker: Full service broker would charge you brokerage as a percentage of your trade value(for ICICI it lies between .5% – .9%).
while discount broker are much cheaper charging you based on the number of trade, between Rs 15 to Rs 30 per trade irrespective of the trade volume.
So if you are going to trade multiple times a month, go for a discount broker rather than a full service one.

II) Online trading vs Offline/Phone trading: Decide what would be a good fit for you (online or offline). If you are comfortable trading online from your laptop/desktop, you will find that most of the major brokers are providing that services. There are some people who prefer to trade on brokers terminal, make sure that you check with your broker if he have a terminal near your place.

III) How often do you trade:
Investor is someone who trades few times a year while trader will trade at least few times a month. If you are an investor brokerage generally won’t make a big difference in your returns while if you are a trader, brokerage can mean whether you end up making a profit or loss. Decide in which category do you fall.

IV) Will you require advice to trade:
If you need adviser, remember to get some historical data of how good the adviser is and would you be comfortable giving him your money. Full service broker generally will have research desk which will send you a lot of recommendations for trading in stocks and will be in touch frequently asking you some basic questions regularly.

V) Do you have access to internet: One more thing to keep in mind while looking at the broker is whether or not it provides call-n-trade service. Because even if you have a smartphone, there could be a chance that you are not able to access your account due to slow internet speed. Then you should be able to call you broker for closing the trade. Most of the broker provide call-n-trade service but ask what is the extra charge for using that service if any. Also some broker say that the provide this service but when you try to call then, the number is always busy. Make sure that you ask them what is the normal wait time to get call-n-trade service.

VI) Internet savvy: Newer generation people are tech savvy and don’t mind to trade completely only. If you are like then, discount brokers would be a good fit .If you do use local brokers, I would suggest that at least compare their brokerages with some of the new discount brokers to see how much money you are losing by way of higher brokerage.

VII) Trading platform provided: One more important thing to ask is what trading platform is provided by your broker and is there any extra charge for accessing that. Most of the broker will provide NEST trading platform free of cost but then charge a monthly charge for access there charting platform or to get access to real time data from there platform. So it is a good idea to get a better understanding of what is being provided by you broker to start with.
-lp

(ref-indiansharebroker.com)

Global markets and China stocks crashing:
Asian markets were trading in deep red in early trade on Monday with Shanghai shares crashing 8 per cent sparking widespread unrest in global financial markets. The Dow Jones industrial average on Friday fell 530.94 points, or 3.12 per cent, to 16,459.75, the S&P 500 lost 64.84 points, or 3.19 per cent, to 1,970.89 and the Nasdaq Composite dropped 171.45 points, or 3.52 per cent, to 4,706.04. For the week, the Dow dropped 5.8 percent and the Nasdaq tumbled 6.8 per cent.
G Chokkalingam, founder and managing director, Equinomics Research & Advisory, said, “Today’s fall can be attributed to nervousness in US and China markets. I believe, Indian markets will recover faster and will do better than other markets.”

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