What factors to consider when you open a trading account?

Opening a trading account with a broker is the first step to participate in the equity markets. There is the standard Know Your Client (KYC) procedure you need to go through and most brokers today also offer you the added benefit of online trading. As an investor you might be confused on how to choose the best trading account as you have the choice of a larger number of brokers. Typically, leading brokers like Religare Online will offer you a seamless experience where the entire value chain from the transaction to your bank debit to your demat credit becomes seamless. Here is a check list of factors you must consider and ask yourself before opening a trading account:

Costs matter a lot in a trading account…

Ensure that your fixed costs like account opening costs and the annual maintenance charges (AMC) are kept at the bare minimum. These are the costs you can save. When you sign up for a brokerage plan, be clear of how much volumes you are going to do. Many brokerage plans will offer you discounts at higher volumes. But if you are not going trade those volumes you will end up paying higher fixed brokerage. Additionally, brokerage is not your only cost. In addition, you will be charged STT, stamp duty and turnover fees. There is also the service tax that the broker levies on you as per statutory requirements. When you open your trading account and select your brokerage plan, you must take all these costs into account.

Does my broker offer online and offline trading…

Online trading is the simplest way to trade in a seamless manner. But you always need a back-up facility in case your online interface does not work. Test and ensure that the call-and-trade facility offered by your broker functions smoothly and seamlessly. This facility becomes more important in times of volatile markets. Also check that the interface between your trading, demat and banking is absolutely seamless. Click here to open Religare Online trading account now.

What is the quality of research and analytics offered by your broker?

This is quite critical in a competitive environment. Brokers need to offer high-end and easy-to-use research and analytics to enable and empower clients to make their own investment decisions. Check out the trading software to ensure that is easy to use and designed to reach your destination in minimum number of clicks. Religare Online offers tools like Star Ratings – A stock market analysis tool that provides stock trading tips, TechScan – A technical analysis tool that helps you get unique trade ideas, analysis on investment opportunities and monitoring of your stocks; Power FnO – Real time price analytics and trading platform retail traders in Derivatives Market etc.

Is the trading platform in sync with my unique needs?

This is another important question that you need to ask yourself before you choose your broker. Research and analytics are one side of the story. The broker should also offer quality advisory services and the support of a full-fledged advisory team. That is the differentiating factor when you choose your broker. After all, you are not just choosing your broker to execute transactions. You expect the broker to add tremendous value to your trading and investing activity. Also ensure that what you get is not just an off-the-shelf broking solution. It must be customized to your unique needs. That is the real test!

Religare Online, a leader in the full range of broking and advisory services offers these services to clients at a very competitive cost. At Religare, the advisors not only give you the optimal solution for your unique needs but also ensure that this is executed on your behalf at the minimal and most competitive cost. The high-end research and analytics plus the customized solutions for your needs will be the icing on your cake.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: