Reviews of Stock Brokers

The selection of a stockbroker for an investor can sometimes be challenging, and as a result, an investor may choose a stockbroker who does not meet their needs. As a result, one of the most critical components that investors need to consider before selecting a stockbroker is reading stockbroker reviews.

Customer reviews are generally honest and provide to-the-point information about a stockbroker’s services and how well they perform their duties.

Stockbrokers’ reviews can provide a concise overview of the various factors to consider. For instance, what is their rate per trade, what security types are available, do they offer any extra services that others don’t, how comprehensive are the monthly plans on offer, will there be any incentives for investing with them, and finally, how competent and efficient is their customer service? In addition, reviews could also highlight areas where improvement may be necessary.

An average investor must review and read the most important aspects of the reviews when searching for a stockbroker. Among these are their charges per trade, whether they offer diversified trading services, such as equity trading, currency trading, and commodity trading, and, finally, whether are they offering over-the-top services such as banking and insurance programs at the same rate as other stockbrokers.

When investing, one must not only take the stockbroker reviews into account but also consider the general rates in the stockbroker market. The account opening fee for different brokers can range from Rs.0 to Rs.200. Your annual stockbroker account maintenance charges should be around Rs.300, usually involving either NSDL or CSDL depository services. Once you have opened your account and paid the upfront fee, you will face a charge per trade executed; this is essentially the broker’s service fee. Typically, equity delivery, intraday trading, futures, and options have a flat rate of Rs.20 per executed trade; some stockbrokers may also offer currency and commodity trading at a nominal rate of Rs.20 per trade.

Aside from the charges mentioned above, investors are not aware of several other hidden costs that are not included in the apparent charges. For their turnover, the Securities and Exchange Board of India (SEBI) charges Rs.20 per crore on the value of the transaction.

Stamp duty charges vary from service to service, such as Rs.200 per crore for equity and commodities futures and options, or Rs.10 per crore for currency and bonds.

A GST of 18% is imposed on brokerage and transactions, with varied Securities Transaction Tax (STT) amounts. For equity delivery trades, a sum of Rs.10,000 per crore is applicable; for intraday trades, it is Rs.2500 per crore; for futures trading Rs.1000 per crore is charged; and for options trade, the STT stands at Rs.5000 per crore. Despite these charges, stockbrokers have a range of offers that can act as an attractive incentive for potential investors.

There are several offers you should keep an eye out for, including free stock trading and a Demat account, flexible trading plans, brokerage coupons, happy hours, and holiday specials. Stockbroker services are offered at a discounted rate during specific times and on special occasions, and there is no brokerage on a loss trade, meaning if the trade fails, your money is refunded.

An investor can increase his exposure to a specific trade by using leverage from his stockbroker while choosing a stockbroker. Leverage ratios vary from stockbroker to stockbroker, as 1:100 means that an investor receives Rs.100 to trade with for every Rs.1 of his share capital from the stockbroker.

Over time, the stockbroker industry has seen huge changes. It now provides a wide range of services ranging from mutual funds to systematic investment plans to full-fledged banking services – all designed to assist investors in creating long-term portfolios with securities, government bonds, and currencies that offer high returns and low risk. Furthermore, some leading brokers also provide insurance plans for their customers, resulting in an influx of new clients who become loyal over time.

Full-Service Brokers vs. Discount Brokers

Discount brokers often offer their services at a lower cost than full-service brokers. They are usually apt to provide less comprehensive support, which includes not having the skill set to provide valuable investment advice and analysis. However, full-service brokers can offer in-depth assessments of clients’ trading plans using both fundamental and technical analysis during transactions. Furthermore, these professionals are known for giving their clients important insight into how stocks perform by examining research, and company reports, and predicting future growth rates.

Platforms for trading

To facilitate trading, an investor needs to consider a suitable platform. Three leading contenders are MT4, MT5, and TradingView. MT4 and MT5 are typically used for Forex trading, while TradingView allows the trading of stocks, forex, and commodities. It is also compatible across Desktops, Apple IOS devices, and Android devices. Of the three, TradingView is particularly popular among traders due to its user-friendly interface that makes it easy to analyze charts, calculate risks/rewards, and set up stock/forex chart notifications.

In addition to these three major platforms, many stockbrokers now offer their own software, and you can connect these platforms to your cell phone to receive instant updates and SMS alerts on stocks on your watchlist.