Pointers to keep in mind while opting for an online broker

Pointers to keep in mind while opting for an online broker

Online brokers provide a viable option that opt for do it yourself option rather than handing over their portfolio to someone else for managing. In modern times investors can buy or sell assets with a simple click of a mouse and end up avoiding a lot of costly commissions with the brokers charge. But with dozens of brokers out there the choice of the right broker seems to be a really difficult task. When  you are about to choose the top 10 discount brokers in India, pay attention to the below pointers.

Undertake your own research

Better news pouring in for investors they are plenty of scope as far as financial research is concerned. The bad piece of news is that to avail reliable and proper information can be expensive and a costly task. But the quality along with quantity of research is known to vary as many experienced investors feel that a good quality research meets their requirements. As an experienced investor you expect the broker to keep them informed about the various investment options.

What are the fees?

As far as investment is concerned it is all about making some money and the low fees should not eat on to the returns. A good news among do it yourself investors is the cost of brokerage has significantly in the last few years. Though the basic trading commissions keep on varying from one broker to another. Watch out for the hidden fees that the brokers levy and if you are adept in conducting a research at your own end opt for a discount broker.

Diversification

Investors try to avail the diversification route, and be aware on the various options they provide. Certain brokers might provide you access to the international markets and even uncommon investments. The key is to find a broker suited to your asset class as brokers are known to charge you fees on these investments.

If possible opt for the mobile route

Investors are so burdened with their investments that they are looking for round the clock access to their portfolios. The task of a broker is reduced with an ease to use mobile app. By mobile trading investors are in a position to trade during the free hours or even during lunch hours. The investors are up to date about the latest news taking place in the stock market. If the app is top rated it provides an investor a sense of security on their investments.

Do you plan to invest at a margin level?

For an investor who is planning to invest in a margin the margin rates are really important. The interest rates in the case of certain accounts could vary from 1 % to as high as 10 % as this would depend upon the broker and the charges they levy. The market gain from stocks can be completely offset by margin fees, so you need to pay close attention to margin rates. The interactive brokers are popular for their low margin rates.

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