Trading is better when you have chosen the right broker. There are people who shy away from choosing the most experienced brokers. They do not want advice and usually have a small portfolio. They are the traders who just want to finish what they started in the shortest possible time.
Compare brokerage to get the best broker
So, the traders choose the broker who provides them with a reliable trading platform. When they begin the traders always look for low prices from their brokerage firm. Naturally, this goes hand in hand with high leverages since this helps them make big investments.
The two kinds of brokers are the full-service broker and the discount broker. The full-service broker is usually costly because he takes a commission on every transaction that the trader makes. If the trader is dealing with Rs 20,000 worth of stock, then he might end up paying Rs 100 if the percentage is 1% whereas the brokerage for the discount broker will only be Rs 20.
It is important for brokerage firms to be registered with SEBI; it lends them the authenticity and makes all dealings smooth. This also helps one to know how solid the broker is in terms of reputation and experience. This is one way to compare brokerage houses and make a decision for your trade.
Uses of full-service broker
Now, because the full-service broker is costlier, it does not mean that traders avoid them. On the contrary, there are those who want to deal with the full-service brokers all the time. This is because they offer services like a fully serviced bank account link with their trading accounts and advice on investing. For those who do not want to pay the annual fee and for who do not want the advice, the discount broker is the best bet.
Then, there are those traders who do not want all the services. They want to do a limited amount of trade for a small amount of time. They do not have large portfolios and so they like the services of the discount brokers. These discount brokers do not charge much and will deliver you the trading account when you need it.
Good platform and tools
The presence of tools with the trading platform makes things better. These are the market analysis tools that tell you the mood of the market and the trends that might come during the day. The analysis of stocks and shares will tell the trader what will be their movement for the day.
More importantly, the trading platform must be sensitive to the fluctuations in the market. You have the live chart that shows you how the market is heading. The experienced trader will be able to make a profitable trade by trading at the right time with the right commodity. You can also identify the market entry and exit points with the tools. On the spot loss and profit, the calculator will help you to determine which deal you should opt for.
If there is something better than making money, it is the wisdom of choosing the right broker. If you find an experienced broker, you are all the luckier.