Once you have decided to start investing in the stock market, you will need to go to a broker or stock exchange company. The brokers, like in other areas, are intermediaries that will allow you to sell and buy shares. In exchange for this intermediation, they will charge you a commission for each operation in which they participate.
If you have the first steps in the world of investment in the stock market, choosing the best discount broker in India is a key step to start with the right foot. A good broker will not only give you the platform to operate in the stock market, you can also answer your doubts about the different ways of operating, and will be the one that safeguards your money. Therefore, being comfortable and trusting your broker is essential to invest peacefully.
Although opening an account in a broker is easy, and can even be done online in several brokers, you also have the possibility to start investing in the stock market through your bank. That is, keep in mind that the commissions to operate through banks are usually much higher, and the platforms to operate are quite old.
What do you need to open an account with a stockbroker?
Opening an account in a broker is a process similar to opening an account in a bank. You will have to fill out a form with your personal information, register your signature, and prove the origin of your income. You can also submit the deposit of an indemnity, the deed of sale of a property, or any documentation that proves the origin of your funds.
Accounts can be opened both personally and by mail. In this last time, some brokers are beginning to offer the possibility of opening the account online. Although the convenience of opening an account online from the armchair of your home is tempting, do not hesitate to go to your broker’s office to open the account. This way, you will be able to ask all the questions you need in a more relaxed and personal atmosphere.
Once you have opened the account, the broker will assign you an account number and give you the access data to the platform to operate. They will also assign you an account officer who will clarify all your doubts and who you can appeal to any problem. The last step will be to transfer funds from your bank account to the broker so that you can start investing in the stock market.
Who is the best broker?
Finding the best discount broker in India is an impossible task. There is no best broker, but the best one is the one that best suits your needs. The best broker services for you depend on your characteristics as an investor.
For example, if you plan to invest in the long term, a broker that charges a monthly maintenance fee if you do not buy or sell shares in a month is not a good idea. If you plan to buy and sell the shares during the same day (intraday), it is best to look for a broker that will reward you one of the commissions when operating in this way.