Trading in the stock market is a thrilling activity that can be undertaken by every person but a person of limited capital. Currently, with the development of financial technology, there are many more cheap tools than ever before with the intention to draw budget-oriented investors in India. Nevertheless, with the availability of a vast number of social media platforms available today, it becomes difficult to distinguish between which of them provide optimum value. Here, you’ll explore five rules which can come in handy when choosing low-cost stock broking firms for investing in the rapidly growing Indian market.
1. Select trading platforms which charge either low or no trading commissions
But when dealing with an investment while considering a specific budget, low or better still zero trading commissions should be the first thing on the list. The trading commissions are the amount of money that is required from an individual particularly when one is trading in the stocks. These fees can really stack up if you are an active trader and will start to shave money off of your portfolio.
Fortunately, today there are numerous outstanding platforms offering either free or low cost equity trading to accommodate Indian investors who are sensitive to costs. Instead of being charged a hefty brokerage fee every time you trade, consider those that allow for an unlimited number of trades with zero brokerage fees. This helps you to have more of your earned money within your control as you invest in stocks in your portfolio.
2. Beware of Minimum Balance RequirementsÂ
Other costs that affect investor decision making with regard to cost conscience include the minimum account balance that may be required to open an account with certain brokerage firms. A number of conventional brokers demand clients to deposit a certain quantity of funds in order to create or sustain an account.
The great news is that there are other good platforms which do not have these minimum balance criteria anymore and every Indian, no matter what he earns can invest. Look for these platforms that do not require a minimum balance of capital if you wish to engage in trading without a big amount of money. This takes out the unwanted barriers when people wish to start investing while scale is still manageable.
You can then weigh your options to switch to different investment platforms as your investable assets increase over the years. But begin without minimums to start to build to invest as you financially are.
3. Evaluate Investment Offers Relative to Your Requirements
Each of the platforms in question does not necessarily offer the same investment instruments at its disposal. Check if a brokerage offers the kind of investment products you want to invest in – as an Indian investor – including, stocks, ETFs, mutual funds, bonds, and fixed income etc.
If you are aiming for a diverse investment then look for websites that provide information from these big categories of investment in one single account. This makes it impossible to open many subpar accounts to build a diverse portfolio as perceived by many investors. It is easier in the long run to keep track of and manage the consolidated investment rather than have a different account for each investment.
Also ensure whether investment products themselves have any costs that go along with the trading cost like Expense Ratio for Mutual Funds etc. The disclosure of all-in cost in relation to different platforms comes in handy particularly to investors with a keen interest in subject costs.
4. Maximise the Use of Educational Supporting Technology
Stock trading for the first time may not be as easy as people may think, especially for a beginner and therefore it is only wise to be guided as much as possible. There are several investing platforms, especially those targeting regular Indians seeking to take charge of their finances, offering sufficient resources and informative materials. Seek platforms offering the following to empower your investing journey:Seek platforms offering the following to empower your investing journey:
- Tutorials- Informational pieces which help explain basics or teach new concepts.
- Analysis- Access to the latest financial news impacting markets.
- Analysis- Identification of stocks, their rating, related financial information.
- Community- It allows people to get involved in discussions such as forums.
These self-serve resources help you hone your skills to make you a better informed investor and thus a confidence boost. In addition to the material provided above, it is also important to review self-generated material with the relevant investor education material from SEBI. The best information to learn during the initial part of your investment is goal-setting, how to allocate your assets systematically, investing, risk management, and others.
5. Prioritize Platforms with Responsive Customer Support
It is also important to understand that despite the use of research and education, questions and issues can still occur in relation to investing and markets. This is the reason that special emphasis is placed on efficient customer support, especially for first-time customers who invest in such products. Do not settle for anything less than service providers who are capable of offering multi-channel support through email, phone, chat, social networks, and more.
It provides swift and compassionate service that allows you to get a buffer while gaining confidence in investing by yourself. There is a significant sense of assurance that comes with speaking to a human being when you have concerns about your accounts. But quality companies know that, it is their business to make sure that customers are given the tools to succeed in the platforms.
Therefore when using the tools of a wise investor it would be wise to assess the reviews left by the customers and even try to interact with the platforms through the various channels provided as a customer.
Conclusion
Adhering to these guidelines will lead you to the right choice of share market account platforms to invest in the Indian stock market – low cost as per your given budget. Trade commissions should remain low, minimum balance requirements should be reasonably low, the investment options available should be vast, the amount of education integrated should be sufficient, and the quality of customer support should be very high.
