Guide for the new investors
The two most basic prerequisites for entering into the stock market are the broker and the brokerage firm. The fresher’s in this market seem to be confused and perplexed and need a direction to follow. There are some of the aspects that one needs to check before going for hiring the services of any stockbroker. The stockbroker is the contact point for the stock exchanges as well as clients,and it works as a bridge that connects both the exchange as well as the client. In such situation for an individual trader who has not much knowledge or has limited information, the role of a stockbroker holds great importance.
Brokerage Statement along with Account
The most important thing that you will need in the stock market is a brokerage account. It is a trading account statement where all the respective particulars of concerned trades are mentioned that can offer thefair idea to a client about his trading activities and transactions.
Importance of Trade Confirmations
The basic advice that you need to remember as long as you are an investor in the stock market is that read all the documents and agreements before signing. After you open your account, you will have to sign a trade confirmation. The trade confirmation must be kept safe. If you misplace this document, you will put yourself in huge trouble.
Select yourStock Broker or Brokerage Account
The next step after opening the account and issuing the trade confirmation is to look for the right broker. It is your broker that will help you to get the best Demat account in India. It is advisable to hire a stockbroker. The two types of brokers available are the discount brokers and the traditional brokers. You can go for any one of the two according to your requirements. Both the brokers have their advantages and short-comings.
Full-service brokers and Brokerage Firms
The advisory brokers are the money makers and charge at every possible step. In spite of being money mongers, many investors prefer them over the discount brokers because they provide full guidance and advice to their clients. They do all the research themselves and free the client from any tension or burden.
Payment process of the brokers
The payment process and fee structure vary from broker to broker. However, the common thing between all the brokers is that they charge for unnecessary services that are easily avoidable. So, it is better to update yourself to save your money.
Buying stocks without the intervention of abroker
You can save yourself from extra expenses of fancy brokers by buying and selling the stocks yourself. This can be done easily by the “direct stock purchase plan.” It is a smart way to save money but referring to a broker is a better option.
Asset Management Accounts
A new service added by the brokerage firms is the assessment management account. This account is an easy way to save you from the headache of paying regular commissions. You can pay some percentage of value in the account to the broker as commission.