Stock Trading: How to find the best Stock Broking Company in India?
In India, there are more than hundreds of Stock Broking companies (small or big) that provide you various products and services for trading and other investment purposes. But it is very difficult to find out the best Stock Broking company that will fit your requirements. Few broking houses are good for delivery and intraday trading and others are good for commodities. It becomes very confusing to judge a stock broking company based on their popularity, availability is in different locations, brokerage plans and fees, trading platform, customer services, call and trade facilities, online and offline support, wide range of product and services, etc. Any wrong decision while choosing the correct broking house can put you in great misery. So, we are going to mention the important parameters and metrics for comparison between two different broking houses that will help you to decide the best brokers. You will also find the list of top 10 comparisons between two broking houses.
How to select the best brokerage firm in India?
There are several other factors which you need to consider before investing in a stock brokerage firm. Few of the important metrics that are used for comparison are listed below.
1. Company Overview
The company's credentials must be thoroughly checked before you invest in the stock brokerage firm. You must check the history of the company during the recession and also check whether the company is on the verge of bankruptcy or has a secure future.
2. Customer Ratings
The Customer Ratings on various review websites can give you better understanding and can never go wrong as the customers would give proper ratings to the firm only if they are satisfied with the service offered.
3. Research & Advisory
These services are mostly provided by full service brokers which is free of cost. Few discount brokers also give tips and recommendations for which they charge. So if you are a beginner you must consider a full service broker, that can provide valuable tips, recommendations and is well known for its advisory.
4. Brokerage Charges & Fees and Other Charges
When it comes to brokerage charges and fees, most of the traders go for discount brokers. Since, their brokerage charges and fees are very low as compared to full service brokers. But the beginners in stock market must also be aware of hidden service taxes.
The leverage and exposure limits varies from company to company among stock broking houses. There are only few companies that provides exposure of up to 25 to 40 times but you should be careful about the square off timing for intraday trade. But on an average most of the stock broking companies give exposure of up to 5 times to 10 times. Here, you should know about the terms and conditions of the company because the margin policy can change at any point of time based on market volatility.
6. Demat Account & Trading Account or AMC Charges
Check if the brokerage firm is charging a certain amount for opening the demat account and if proper technique is used by the company to maintain the proper digitized form of demat account. Many broking firms don't reveal all kind of charges in the beginning. Once you open your Demat and trading account, they will reveal the other charges later such as annual maintenance charge (AMC), trading platform charges, and other service taxes.
7. Products and Services
The Stock Brokerage firms are entitled to provide all the products that arise from a financial market set up. Starting from SIP to Insurance and Mutual Funds to Equity Funds. It does not necessarily mean that the more products a firm offers, the better the company is. You should look for the ways in which the products are being transferred to the customers.
7. The technology used in Trading Platform and Tools
In the age of digitization, a firm cannot actually say that their services can be accessed on a particular platform only and such. This is an important criterion to consider as not everyone possesses similar kind of OS based electronic devices. It is always recommended that the trading platform you are using should be very much handy to use and easy to analyze and should be very fast enough. Few broking houses don't charge anything for using the trading platform.
8. Complaints and Customer Support
Look for the brokerage firms that treat their customers like kings. If you have any doubts, the customer service personnel should make sure to clarify it. If in case of any complaints, the firm has to look into it and rectify the issue as soon as possible.
List of Top 10 stock broker comparison (maximum searched on Google)
Here are some of the most searched comparison of stock broking companies.
- Angel Broking Vs Sharekhan
- Zerodha Vs Sharekhan
- Zerodha Vs Upstox
- Angel Broking Vs Motilal Oswal
- Zerodha Vs 5Paisa
- Kotak Securities Vs ICICI Direct
- 5Paisa Vs Angel Broking
- HDFC Securities Vs ICICI Direct
- Sharekhan Vs Motilal Oswal
- ICICI Direct Vs Kotak Securities
There are many review websites that reveal the true picture of stock broking houses. They have a platform for comparison between two Stock Broking houses. You can find all the information about any company. The website helps you to gain huge profits by listing the latest share and compare all the stock brokers. One can also subscribe to the websites for latest updates on market news, investment guidance, IPO, advisory, franchise/sub-broker, detailed content about the brokerages, etc.