How do I go about choosing the 'Right broker'? What parameters would I have to consider?

General
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Manju my view will be , for true trader no need for right broker, its all in his technics, & ethics to a trade, if brokerage part if he’s thinking then he cant be at a real trader, :slight_smile:

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  1. Financial health of company. Is the broker really profitable? I mean it would be scary to deposit funds witha broker who is under huge debt

  2. Brokerage:

  3. Leverage: Ideally, the less the leverage given, the better for trader and broker.

  4. Customer Support: I should be able to get my queries resolved ASAP.

  5. Transparency: I should have a clear cut idea about the charges levied by the broker and the services provided to me.

  6. Trading Platform: Better UI, Ease of execution and easy to operate.

  7. Charting: Good charting tools

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Parameters to choose the right broker:

  1. Stock broker Fee/Charges
  2. Trading Brokerage Charges
  3. Transaction Charges
  4. Share Broker Features
  5. Broker Ratings
  6. Customer Service offered

These parameters will help you to choose some good brokers but again if you are stuck with two brokers and want to choose one then exlore the site for comparing  : http://www.chittorgarh.com/article/stock_broker_comparison_parameters/20/

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My parameters:

  1. Customer support round the clock

  2. Looking at the clients benefit than self

  3. Best brokerage structure

  4. Margin facility

  5. Being transparent on all aspects

  6. Value a customer’s feedback and try to implement

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  1. Break even points. The less the breakeven point the higher the profitability. If the cost of trading with the broker is less then break even points will be less and chance of making profit will be higher. Example: Buy 10 shares of ‘X’ at Rs. 100, cost of buying (brokerage and other charges) is Rs.20. Then my breakeven point is ‘2’. Means I make profit only after stock move above 102. 
  2. Customer Service.
  3. Softwares and Reports. 
  4. Reliability.

 

 

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Choosing a right broker depends whether u are a day trader/ invetsor / or a seasonal trader. All the three types of traders will have different outlook for choosing his broker.

I am just mentioning for a trader who sits from 9/15 till 3/30 and trades on his systems and on his own.

he should first look at the brokerage...which should be very less,, so that his entry and exit is fast because the  breakeven is less. He can plan his trades in such a way as per  lot size and quantity size so that his daily target of earning rs xyx is done very fast. Moreover at any step if his stop hits then also he should know that his loss is minimum bec of less brokerage.

High brokerage will lead to high break even point and at many times one will find that he is paying more brokerage all the year  and profit incurred is less than that or has to cut off his positions in loss due to less movement in the scrip

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Guys,

Also to add to your list… “SAY NO TO PESKY BROKERS” who try to manipulate you into placing ‘Sure Shot Trades’ so they can meet brokerage targets.

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Wow … lots been said - but still let me add 2 phrases if it makes sense

  1. Old hindi phrase of the actual aam aadmi - bole tho " Sastha", “Sundar” aur “tikaoo” hona chahiye :smiley:

  2. English mein bole tho - " CHEAP and BEST " :wink:

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The parameters to consider before choosing a good broker :-

  1. Choose whether you want to go for an Online broker or a Local broker.
  2. Go for a broker who gives you the lowest brokerage and who doesn't set any preset condition eg. Minimum trade requirements. A low brokerage increases you chance of being profitable while trading to a great extent.
  3. Choose a broker who gives you the opportunity to trade all exchanges.
  4. Go for a  broker who comes up with innovative tools, that allows customers to take right decisions while buying stocks.
  5. Finally, choose a broker who gives you an excellent customer support.
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  1. You hear of the brokerage firm from word of mouth and not with fancy advertisements

  2. You believe the brokerage firm to be capable of solving your queries, instantly.

  3. The features and brokerage structure offered.

  4. One who is educating the clients with utmost dedication.

  5. Attractive reporting tools and UI.

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Check out the below link to learn about the parameters to select a perfect broker:

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Choosing a right broker is sometimes very difficult for a trader. There are various aspects an investor should consider before selecting a broker for him.
Following are the parameters -

  1. customer service
  2. Trading platforms.
  3. Intelligence to handle trading matters
  4. Certified broker
  5. Experienced and he should not have illegal matters in the past.
  6. A well educated and well- managed broker.