Brokers charge some type of brokerage or fees for some certain specified value called brokerage charges. There are two kinds of brokers in the market one is traditional brokers and other is discount brokers. Traditional brokers’ also known as full service brokers, these brokers play the role for buying and selling of shares and equity, along with this they play many multiple services as well. These brokers are mainly the bank brokers who deal with opening and working of mainly three accounts i.e. Demat account, Online trading account, Savings account. If you are looking for a person who will let you know about all the latest market trends then choosing the full time broker is the solution.
On the other hand, Discount brokers also known as Flat fee brokers and they charge lowest brokerage fee around, they provide minimum trade related services at a less cost. They are being trusted for making trustworthy transactions. These brokers usually charge a fixed brokerage fee irrespective of the size of the transactions they performed. Investors who operate in many large transactions, prefer discount brokers to deal with them, as they charge low brokerage that make difference in the end of the financial year.
Choosing the right and best Stock Broker:
- Short Term: If you are a short term investor that you invest for a day or for less duration then you will look for brokers who charge less brokerage fees and that is associated with the discount brokers.
- Long Term: If you are Long term investor and you are going to invest for longer duration then you will look for a broker who will provide you with all the necessary and accurate information about the market and market trends , then the right decision will be choosing traditional and full time brokers who will seek all the detailed information about the ever changing trends in the market!!
- Cost Effectiveness: There are different types of cost attached with brokerage like: account opening fee, maintenance fees etc. If you are a long term investor and want to invest for a longer time period then you must look for a broker who will charge for a low maintenance fee and if you are short term investor then you will opt for a broker who will charge low opening account fees as you have to open account again and again.
- Facilities Offered: Before choosing a broker with different brokerage fees you will look upon the facilities he is offering to you, either you want to invest in mutual funds or shares etc plus the merits and demerits before making your decision.
- Image of the Stock Broker: Before making decision you must examine the image or the reputation of the broker from the various stock exchange platforms related websites. There you can look upon the issues or complaints, if any against the broker or its investment records, you can check his knowledge or experience in the field and after comparing the broker choose the right one.