Stock Broker Is very Important for Trading & Investment.There are many people who want to invest in the share market but due to lack of understanding of the stock market they are looking for a stock broker who can give them good returns.Whenever someone wants to invest in the stock market he expects good returns from the stock market. If you are ready to invest in the stock market, then firstly you have to choose the right STOCK BROKER for yourself which you To get the correct information related to the INVESTMENT. Stock Brokers are Registered members of STOCK EXCHANGE i.e. NSE and BSE.A stock broker can buy and sell shares for you in the share market. In return, BROKER charges you something called brokerage.
Some Important Tips Before Choosing Stock Broker
View Track Record
Whenever you want to choose a stock broker first of all you should look at the track record behind it, ie you should see how much that broker or broker firm has given their clints in the past years! You should come to analyze the track record of that broker properly so that you can choose a good broker.
Quality Of Service
The identity of a good and right broker is to provide you with good and all kind of service. Therefore while choosing a share broker, it must be kept in mind that it is providing us with which facilities and what is the percentage of quality of service provided by it.
There are many brokering firms that have the facility to do research, which other brokers do not have. If you want to gain a good knowledge of the stock market then the research facility you get can prove to be very helpful Therefore while choosing a good broker, it must be kept in mind whether it has the facility of research or not
When choosing a good broker it is very important to keep in mind that the service fee of that brokerage firm, that is, the brokerage fee If the fees of a broker are very high then you should not think that by looking at the higher fees, this broker firm will be good And do not choose any broker even after seeing very low fees So you should keep in mind other factors besides fees
The practice of a good broker is always to give you correct and accurate information And answer all your questions So always keep in mind his behavior while choosing a broker
Customer Care Services
A good broker always gives you the facility of Customer Care Services too.
TYPES OF STOCK BROKER
1. Full-Service Broker
2. Discount Stock Broker
Full service stock broker fees are very high. The reason for this is that full service stock brokers provide a lot of service to their clients. the facility of margin money to buy stocks the facility to trade on mobile phones the facility to invest in IPO besides the customer service of full time stock broker is considered very good.They all have brokers or branches in many cities. Some of the most popular brokers in full service stock brokers are – ICICI DIRECT, SHERKHAN, HFL, HDFC SECURITIES LTD etc.
2.Discount Stock Broker
Friends discount stock brokers are much cheaper than full service stock brokers. This stock brokers allow their clients to buy and sell shares with very low brokerage. This stock brokers charge less because they do not provide stock advisory and research facilities to their clients.And they also have offices in some big cities. Much of their work is done online their work to open an account is also done online so their fees are less. There are some popular discount brokers in India – ZERODHA, SOUTH ASIAN STOCK LTD, MASTER CAPITAL SERVICES LTD etc.
DOCUMENT REQUIRED FOR OPEN ACCOUNT IN STOCK BROKER
- PAN Card (Mandatory by NSDL)
- Certificate of Residence – You can submit any one of the following written certificates as your residence certificate:
- Driving license
- Aadhar Card
- Voter ID Card Ration Card
- Telephone bill
- Electricity bill
How To Order A Stock Broker To Buy And Sell Shares
There are three ways to contact a stock broker.
1.You can call the stock broker the company provides you with a manager.
2.You can also place an order with the help of online trading account provided by stock broker.
3.Stock brokers also provide a trading Android mobile application with the help of this aap you can also place an order.
STOCKK BROKER LIST
- ICICI Direct
- Geojit Securities
- India Infoline
- HDFC Securities
- Motilal Oswal
- FRR shares
- Lkp securities
- Angel Broking
- Sharekhan etc.
Types of Account Opened By Stock Broker
Stock broker opens 2 accounts of investor
Trading Account is used to exchange money to buy Share in Share Market and to place order to Stock Broker to buy and sell Share.The Trading Account is linked with our Demat Account and when with the help of Trading Account we place an order to buy the Share to the Share Market and our order is completed the purchased shares are deposited in our Demat Account And as much as share is purchased.
Money is deducted from our Trading Account with that value and with tax and brokerage charge and similarly when we sell Share the Share sold is reduced by Demat Account and the Amount of Share sold is our Trading Brokerage and tax are deposited in the account after deducting tax.We cannot order any share to buy and sell directly from the Share Market our stock broker takes our Share Buy and Sell order to the Share Market so the Stock Broker will take all our Buy and Sell Orders to the Share Market. Opens an account for which is called Trading Account.
How To Open A Trading Account
You have to have a Demat Account to open a Trading Account when you open a Demat Account, you can also open your Trading Account from the same the broker links your Trading Account to your Demat Account.You can contact a Depository Participant (DP) who is a broker or sub-broker of NSDL or CDSL to open a trading account. Today many banks and institutions are acting as DPs
Apart from these banks there are several private financial institutions across the country which are acting as DPs, whom you can contact to open a Trading Account, and open your Trading Account.
This is similar to a savings account in a bank. However anyone can hold or transfer any share or stock in this account. It is a digital form of account. A demat account is an abbreviation for a dematerialized account. process of dematerialization can be understood as a method of converting or representing physical shares and securities in digital format. With the help of demat account one can easily sell and sell in the stock market.Investors generally have a dilemma as to how to choose the best demat account. A demat account offered by any brokerage firm should always be selected based on criteria such as ease of opening the demat account software and user interface provided by the brokerage firm, trading cost and brokerage minimum annual maintenance fee where we Trading easily.
How To Open Demat Account
The process of opening a demat account is usually very simple. You have to fill a demat account opening form online then enter the details related to the required personal contact upload the required documents and fill in some required details. Once the e-verification process is complete the demat account is ready for customers to start trading and investing
Demat Account Benefits
Demat account has many benefits which make it quite popular.This account saves lot of time for traders. Within a short period of time shares can be transferred, bought or sold. A demat account allows you to hold different securities like mutual funds, equities, shares, bonds in a single basket.
It facilitates investors Also with a demat account, all orders and shares are secured in one place and investors do not have to worry about the security of shares which was previously the case with the physical form of shares.
Difference Between Trading Account And Demat Account
Demat Account And Trading Account Are Both Required To Trade In The Share Market
Trading Account is used to buy or sell orders in Share Market while Demat Account is used to store shares as a store Trading Account is used for transactions and Demat Account is used to keep the shares secure.
Let us explain through an example suppose when you buy Shares using your Trading Account the money is withdrawn from your bank account and the Shares are deposited in your Demat Account.
In the same way when you sell Shares, the Shares are taken out of your Demat Account and sold in the Share Market the amount received from selling Shares is deposited in your bank account.