Selecting the right stock broker

There are literally thousands of brokers in India offering not just stockbroking services, but also many other kinds of financial products and services to their clients. So, how does one decide on which brokerage house to choose and what criteria should be applied while choosing one broking firm over many others? Here are some of the key criteria one should look for in a broking firm:

Brokerage structure: For an investor, the lower the brokerage, the better it is as the investor stands to save on the brokerage cost every time he/she enters into a transaction. But one should not get lured just because the broker offers lower rates because if the services offered are not at par with other broking houses that charge a bit higher brokerage, it is not worth opting for the lowest cost broker.

Technology platform: A broking house that has a high-end technology trading platform is better equipped to meet the evolving needs of traders and investors by offering new features and solutions. The high-end technology platform ensures execution speed that is mission critical in stock trading.

Transparency: The brokerage structure of a broking house should be fair and transparent for all the clients. The brokerage structure should be displayed by the broking house on its website and there should be no ambiguity in the calculation of the brokerage on every transaction. More importantly, the broker should not levy any hidden charges on the clients.

Bouquet of services: Rather than offering only stockbroking service, if a broker offers other services such as subscription to the IPOs and NFOs, buying and selling of mutual funds units and debt instruments, etc. it is always better to go for such a broker as one can buy the financial products and avail the other financial services all under one roof.