Question- How will you choose the right broker for online trading?

Ans.

Choosing the right Broker for Online Trading

To Trade Online in Shares, you need to have a trading account and Demat account. These accounts are provided by the brokerage houses (DP) and they charge for their services. This is why you need to choose brokerage houses / brokers very wisely. There are various parameters you need to check before you click on the application for the Demat account with one of them.

1. The experience of the brokerage house is a crucial factor. You need to see for how long they are in the business. Whether they deal with the products you want to trade online or not.

2. Check and compare the charges for a few of the brokers whose services meet your requirements. If will be foolish to choose one randomly without comparing a few. Often, we check the brokerage charges and forget about the hidden and other charges.

3. Then you need to see whether the brokerage house is a full-service broker or discount service broker. This will determine their range of services.

4. You need to see how much is the minimum amount you need to invest to start trading with the broker of your choice. You need to check whether it fits your investment budget or not.

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