The concept of investing and trading in stock markets is not a new one. Everyday a plethora of investors put their money into buying stocks and shares. Almost all the best stock brokers in India have gone online now. Online trading is pretty simple and it can be done from the convenience of home. Also, with the emergence of mobile applications, it has become even more simple to continue trading online from anywhere at any time. However, the most important aspect of stock market trading is the brokerage platform. Since all the stock market trading is done online these days, it is important to choose a genuine stock broker. Most of the mistakes in the stock market are self-inflicted. With continuous fluctuations in the stock market, profits, and losses have become very common. But consistent losses affect the trader’s psyche and it pushes them to make more mistakes. That’s exactly why this blog is going to be helpful. By the end of this blog, the traders (even the beginners) will have a clear idea of what are the factors to check while choosing the best stock broker in India.
Here are the mistakes to avoid when choosing the best stock broker in India
- Do not ignore the license and registrations:
Whether you are choosing a stock broker for the first time or you are planning to change your stock broker, never ignore the license and registrations. It is important to follow all compliances for online stock brokerages. Some of the compliances are related to marketing, bookkeeping, KYC norms, and more. A genuine stock broker that complies with all the necessary norms will mention that it is a SEBI-registered brokerage. SEBI (Securities Exchange Board of India) is the regulatory authority for the stock market in India. It is important to check whether the online broker is SEBI registered or not. If the online broker doesn’t have the necessary credibility, then it is not the right stock broker for you.
- Don’t choose the brokerage platforms with the cheapest commissions:
If you search online, there are numerous online stock brokers available at present. Several discount brokers charge commissions that are much lower compared to traditional brokers. This tempts a lot of investors to save money. However tempting it might be, do not get lured into the trap of paying lesser commissions and brokerage charges. It is important to consider several other factors like the quality of customer service, the robustness of the platform, credibility, and transparency.
- Do not choose a single online broker:
Yes, it is true that no one likes to change online stock brokers repeatedly. Every trader wants to stick to the best stock broker. However, it is better not to be dependent on only one stock market broker, especially if you are planning to trade and invest. The best idea is to use two separate online stock brokers in India for trading and investing. There will be days when one online broker will perform slowly or even become unable to perform due to market volatility. In this way, you will always have a backup option when one broker doesn’t perform.
- Never ignore the reviews and testimonials:
Many investors and traders that look for the best stock broker in India, research a lot about stock brokers online. Along with that, look out for reviews and testimonials from other traders and investors who have used the brokerage platform. While checking the reviews, remember that online reviews can be manipulated to work in their favor.
The best idea is to get in touch with a trader or investor who has used a brokerage platform and get feedback from them. If you can speak to them, then you will have the first-hand information on how the stock broker has performed. There are certain aspects that one might have missed while checking an online stock broker in India. Those factors can be highlighted by existing customers or investors who have used the platform previously.
- Do not blindly follow the recommendations:
When you are using a brokerage platform, they will share a lot of recommendations and updates with their customers. It is not that all the recommendations and offers are bad but you have to do your research before choosing an offer. Before you buy or sell shares, conduct your own research on whether you should do it or not. Do not blindly follow the recommendations of the brokerage platform.
- Not making full use of the brokerage’s services:
When choosing the best stock broker in India, most traders tend to ignore the additional services provided by the brokerage platform, especially the beginners. New traders and investors only consider the brokerage platform for dealing with trades and shares. It is important to remember that the best discount brokers in India offer a wide array of services apart from helping you to trade in stocks. You can use the platform for investing in different financial instruments like commodities, mutual funds, and more.
Online brokerages also offer a lot of useful content through their blogs, articles, infographics, and videos. You can go through them to learn more about the kind of services they offer. Many traders tend to ignore them, but that is how you make the best of the stockbroker you are using. You can access them for free. Thus, not knowing about the additional services that they provide and not using them would be a mistake. When choosing a stockbroker in India, check the additional services they are offering because these services will help you in the long run.
- Never be impatient while choosing brokerage platforms
While choosing the best stock broker in India every trader will come across a plethora of platforms offering multiple facilities. Don’t make hasty decisions. Compare the charges of different brokerage platforms, their facilities, and additional services you will receive, and then choose. Remember that as a trader you will always make better decisions if you think rationally by weighing the pros and cons. Just because a brokerage platform claims to be the best stock broker in India, it doesn’t become one.
These are the mistakes that you need to avoid when searching for the best stock broker in India.
