The task of choosing top stock brokers for a beginner is not an easy one. It also means that you have to choose the best demat account for a beginner. The reason being both these accounts operate at a parallel level. Now the question arises which among the brokers provide you with the best of them. Though we might not get into specifics of a broker, but let us outline the factors that help you to make your decision.
Does the broker have a reasonable reputation in the market?
This seems to be a subjective question but the market feedback hardly goes wrong. Discuss with traders or Investors and hardly are they going to provide you with a wrong feedback about the brokers. Just check out the websites and news reports for value added statements. The manner by which brokers treat clients as a beginner would provide you with a viable idea about their business model.
Would the broker go on to provide you with a 2- 1- model or a 3- 1 model
If you consider a retail point of view a 2 in 1 model is a lot better than a 3 in 1 model. So as to ensure that the broker and the DP are under the same head this ensures that the process is smooth. Suppose your broker is not your bank you can rake in money from your bank account. As far as the best trading account for beginners is concerned, you have to consider 2- 1 seamless facility at a bare minimum. This goes on to overcome a lot of procedural hassles in relation to trading.
How about the online trading platform of the broker
An online trading account enables you to trade from your home or an office as this is an obvious choice. The best online broker for a beginner is one that provides a simple and flexible mode of executing transactions. If you are planning to search for logical icons it does not add value. Now does the online trading platform of the broker enable you to move from one step to another in a matter of 3 clicks?
The add – on that the trading site provides
The best trading platform is one that guides you through the process of trading. The concept of trading is all about execution and information. Ideally the broker should go on to provide you with a host of screening tools and provide you with powerful wealth creation ideas. Now are the brokerage rates competitive and are there any hidden costs involved.
The most important aspect to be taken into consideration while choosing a broker is the brokerage cost involved. Yes no one would provide you with zero brokerage but the rates offered have to be competitive in nature. There is a cost to the broker but it has to provide a true value for money. At the same time keep an eye on the hidden costs. Opt for a brokerage structure where you obtain a true value for your money.