A stockbroker can be a person or the best stock broking platform online like Wolf CFD that facilitates a trader selling and purchasing marketable securities such as stocks and exchange-traded funds. Using a stock broker’s services, you can open a brokerage account, a specific kind of financial account developed to hold a trader’s funds and investments.
Suppose you are willing to purchase stocks of a company; what’s the correct procedure to follow for this purchase? There is no such option as calling up the company and asking them to buy their shares. Neither, a walk into the bank for investing will help you out. To buy shares or stocks of a company or a brand, you will always require a brokerage account. In this situation, a stockbroker will come to your assistance.
Different Types of Stockbrokers
Stockbrokers are mainly of two types: discount brokers and full-service brokers. These brokers will offer their services at a different level and cost for your trading needs.
Discount Brokers
A discount broker or an online discount broker is a company-based service provider that assists a trader or investor with selling and purchasing securities and funds online. As an investor, you can direct these brokers to sell or buy your desired stocks, or you can sign for an automated robot-advisor to make your investments. Many discount brokers come with features that aid you to decide on how you can direct your trades effectively; however, there will be no human broker at service taking and filling your requests.
These discount stock brokers offer services cheaper compared to full-service brokers. Also, in most cases, you receive a trading facility at no commission costs. If you belong to the majority of beginner traders, a discount broker can serve as the best option available for you.
Full-Service Broker
These types of brokers are old-timers in stock trading. Full-service brokers are physical firms operating from physical offices where human beings, also known as stockbrokers, handle their client’s requests to buy and sell a company’s securities. These brokers can also provide you tailored investment planning services such as which stock to buy, guidance on taxation, and retirement planning advice as well.
Full-service brokers are often way expensive compared to discount brokers as they include various costs associated with human advisors and their physical office locations. However, their prices have come down gravely as they need to face edge-to-edge competition with discount brokers or online brokers. These brokers have also aimed to make trading more accessible and automated now to provide ease of investments for traders.
If you need a personal level of advisor and brokerage services for your dedicated investment portfolio management, then full-service brokers will be the best selection for you.
How to Select the Best Brokerage Account?
Here are some critical factors to think through while selecting the best online stock broker in India for opening a brokerage account.
Cost Structure
However, there can be some included charges for surplus services such as options trading, mutual funds, and other tradable products.
Minimum Deposit Amount
Some online brokers charge a minimum deposit amount for opening a brokerage account. It can be anything from INR. You will also find some best brokers who will charge you no amount at all.
Variety of Funds
As a novice trader, the best pick for an online broker will be a service that can offer low-cost ETFs and zero-fee mutual funds so you can make wise investments even without having a ton of knowledge of the stock market.
Account Options
Online brokers will offer you two options for accounts:
- Cash account, which will allow you to spend only the amount you have available in your account.
- In a margin account, you will borrow funds from your broker to make investments. However, trading with a margin is always a challenging aspect. It can still be an excellent option for novice traders.
The Selection of the Best Stock Trading Platform as Final Takeaway
Being a rookie investor, you may be trading with limited funds in your hand. Also, you will require guidance on how to get started with your online stock and other funds trading. In such a situation, you can be benefited from Wolf CFD’s online trading platform. Wolf CFD has been the best stock broking platform and commodity platform. They offer to trade online at a low brokerage, being India’s Top Stock Brokers. You can visit their online discount broking platform and start trading stocks right away.
