Things to Look Out In Your Broker

Nutan Gupta

22 Sep 2017

Investment is the key to long-term wealth. Though this fact has been known to mankind since long, activities have become concentrated only in the recent times. The stock market is one of the most popular areas of investment and has shot up due to the advent of online trading. The online trading sphere is a buzz among a large number of investors and brokers.

Not Just a Broker but the Right Broker

Not every broker is a right broker or someone who can strike the best deals for you. In case you happen to hire a broker who often misses getting the best deal, it would be a complete drain of wealth. So you must hire a genuine and efficient broker for incurring your income and to do this you must have a vision for your prospective broker. Here are some essential pointers to look for in a broker.

Always available:

Stock market is highly time sensitive. The entire market situation can change in a few seconds. So make sure to hire an online stock broker or an online stock trading agency which you can reach anytime, especially during the peak hours of stock trading. If the website fails to load or take a lot of time to open, then give it a miss.

Background matters:

Investing in a stock involves a lot of research, observation, analysis and others. Similarly, it would be wise and hence advisable to conduct background search for your broker. Check the track record and ensure the authenticity of the services.

Helps you with product selection:

This is an important task of a good broker. He is supposed to help you to buy the right stock or products because you have minimal knowledge about stock trading.

 

Look for extras:

A stock broker is supposed to offer trading services, also check out if the broker provides added services. Every professional and reputed stock broker offer complementary services to its clients. If your broker is not offering any such services then give it a miss.

Follow these simple pointers to get the best broker and get best stock trades. Making money gets easier with the right broker!

Have Referral Code?

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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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Things to Look Out In Your Broker

Nutan Gupta

22 Sep 2017

Investment is the key to long-term wealth. Though this fact has been known to mankind since long, activities have become concentrated only in the recent times. The stock market is one of the most popular areas of investment and has shot up due to the advent of online trading. The online trading sphere is a buzz among a large number of investors and brokers.

Not Just a Broker but the Right Broker

Not every broker is a right broker or someone who can strike the best deals for you. In case you happen to hire a broker who often misses getting the best deal, it would be a complete drain of wealth. So you must hire a genuine and efficient broker for incurring your income and to do this you must have a vision for your prospective broker. Here are some essential pointers to look for in a broker.

Always available:

Stock market is highly time sensitive. The entire market situation can change in a few seconds. So make sure to hire an online stock broker or an online stock trading agency which you can reach anytime, especially during the peak hours of stock trading. If the website fails to load or take a lot of time to open, then give it a miss.

Background matters:

Investing in a stock involves a lot of research, observation, analysis and others. Similarly, it would be wise and hence advisable to conduct background search for your broker. Check the track record and ensure the authenticity of the services.

Helps you with product selection:

This is an important task of a good broker. He is supposed to help you to buy the right stock or products because you have minimal knowledge about stock trading.

 

Look for extras:

A stock broker is supposed to offer trading services, also check out if the broker provides added services. Every professional and reputed stock broker offer complementary services to its clients. If your broker is not offering any such services then give it a miss.

Follow these simple pointers to get the best broker and get best stock trades. Making money gets easier with the right broker!

Have Referral Code?