The stock market is a medium of floating shares of a company through which ownership of the respective company can be distributed among various shareholders. This helps the companies to raise money for various business operations. Investors are promised a certain percentage of return over their investment which depends upon market fluctuations. Some Traders and investors also indulge in intraday trading which helps them to earn profits by buying and selling shares and other securities. A beginner may feel intimidated due to its complexity and prerequisites which must be fulfilled before entering the stock market which includes opening up of Demat account. In order to solve this problem, investors hire the services of stockbrokers and brokerage firms. They act as middlemen who provide assistance with the buying and selling process of shares and debentures. Top stock brokers in India provide various services and investment plans like zero brokerage plan which improves the chances of earning higher profits. They provide complete market information and help in the creation of a diversified investment portfolio.
A genuine stockbroker must possess the following qualities which distinguish him/her from a false broker:
A proficient broker who has years of experience in the trading field will charge a reasonable brokerage and margin rate for the same. A genuine broker will charge a reasonable brokerage rate according to the services provided. A discount broker charges according to the number of trade transactions on a flat rate basis. Moreover, they have a lower margin percentage as compared to full-service brokers. Traders and investors who want a diversified portfolio with a wide investment limit can consider full-service brokers. However, beginners with less trading experience must go for discount brokers.
Tools and trading mechanisms:
Genuine brokers provide professional trading tools and mechanisms which help the traders to transact easily on the online stock market. These tools may include mobile applications and annual brokerage plans which increase their chances of greater profits. Moreover, such tools and services provide greater convenience and prove to be of great help for beginners who are unaware of the procedure to trade in the online stock market.
Stockbrokers are known to take a greater risk as compared to traditional stockbrokers who do not indulge in much risk. Genuine brokers are fearless and conduct timely market analysis in order to identify the stocks which can result in greater returns. Top stock brokers in India should possess the necessary know-how and knowledge to deal with risky ventures.
Years of experience:
Stockbrokers should have years of experience in the trading and brokerage field. Experience results in more proficiency and a greater knowledge base to understand various market trends. Moreover, the knowledge base in combination with experience results in a greater understanding of the financial and stock market ups and downs i.e. bull and bearish trend. The experience provides the ability to predict future market trends with greater ease and efficiency which in turn benefits the traders and investors.
Apart from all the above features, a stockbroker should be able to adapt himself/herself according to changing times. These points must be kept in mind before selecting the best stock broker for both investment and wealth management services.