How To Select Your Stock Broker In India-peepsamurai

Investing Stockbroker is an important person, helping you deal in trading of stocks. He should be able to give you proper advice and .ply with regulations governing the intermediary. Stock brokers in India are of two types, one is the broker another is the sub broker. Both entities are registered with SEBI and stock exchanges, but their responsibilities are different. Brokers are liable to fulfill contracts with the investor. The sub-broker is the brokers agent and a local facilitator only. If you do not receive your securities or payments, then it is the broker you should hold responsible. With the .ing of internet they are called online trading brokers who deal in online stock trading. The next important criterion is the quality and impartiality of advice given by the broker and his method of delivering them. Investors who actively deal in online stock trading require several technical calls during the day. The investor should beforehand check the resources used by a stock broker for their research purpose. Some brokers would employ a full-fledged research analyst to analyze .panies and give advice while others tend to merely pass on what is called market information. Advice, backed by a written .munication, explaining the logic behind the re.mendation, should be sought. Nearly 95 per cent of advice given pertains to buying; selling re.mendations are rare. Therefore, the decision to sell should always be yours. The broker does not always know whether you have acted on his advice; hence, he does not keep track of your portfolio. If its a value-added service from a stockbroker with all disclaimers it will consist of a list of investment opportunities. It is for you to understand your own profile and find the ones that suit your investment objective. Understand that the risk is yours, and also know that having taken advice based on research, it is solely your decision to exit with profit or loss. Trading on the basis of tips can be risky. Those who want to manipulate prices float tips. When this leads to an increase in share price, investors believe the tips are reliable and then are continuously led by them. Some brokers who run a proprietary desk may also give tips on shares. It is necessary to check his declaration in this regard. Each time he gives a re.mendation he is expected to declare his interest. .pliance with regulations is an important aspect of a brokers credentials. Various regulations have been put in place by SEBI for investor protection. Inspections are carried out by stock exchanges and SEBI to ensure that the broker provides a certain level of service to investors. Visit the websites of the exchanges and SEBI to check if any adverse remark or action has either been taken or is pending against the relevant broker. Besides good advice, the primary role of a online trading broker is to provide a reliable online stock trading platform. Connectivity to stock exchanges, depositories, links between the brokers head office and your location, links to and from the bandwidth service provider, network hardware, .puters, software, etc, are all interlinked for the speedy and smooth execution of service. The .plexity and number of .ponents makes this a high-risk element in the entire trading process. It is therefore necessary to understand the technological risk associated with trading and the brokers preparedness in this. A poor .work response or stoppage can lead to heavy losses. About the Author: 相关的主题文章: