When we think of starting an investment or trading, it is very important to choose a good broker and a broker with a good trading platform. And so, in this post, we will learn how to choose the right and reliable broker. So that you will not regret it in the future.
Therefore, there are some important things to keep in mind while choosing an online broker. I will now explain all these things in a detailed and to-the-point manner, which will help you choose the right broker.
Fees? – Consider the cost
Understand the broking fees
- The first thing to look at when choosing an online broker is how much their fees (broking charges) are.
- There are two types of brokers in India – discount brokers (like Zerodha and Upstox) and full-service brokers (like ICICI Direct).
- Discount brokers charge very low fees, while full-service brokers charge slightly higher fees as they offer more services.
Delivery and intraday fees
- Delivery trades are when you buy shares and hold them for long-term investment, while intraday is when you buy and sell within a single day.
- Some brokers (like Zerodha, Grow) do not charge any fees for delivery trades (i.e. ₹0), but there are fees for intraday and F&O (futures and options) – around ₹20 or 0.03% to 0.05% (whichever is lower).
- For example, if you trade ₹1,00,000 intraday and the fee is 0.05%, you will have to pay a fee of ₹50. But full-service brokers (like ICICI Direct) charge 0.55% for delivery and 0.275% for intraday, which is higher.
Other costs
- Look at the costs other than the fees – such as account opening fees, annual maintenance charges (AMC), and fees for some additional services (like research reports).
- Some brokers (like Angel One) charge higher fees for some services, while others (like Zerodha) keep these fees low.
Choose according to your trading style
- If you do a lot of delivery trading, brokers like Zerodha or Groww are good, as their delivery fee is ₹0.
- If you do a lot of intraday trading, choose brokers with lower fees (like Upstox or 5paisa).
Easy to use platform– Technology convenience
Mobile and desktop apps
- Most people trade on mobile these days, so the broker’s app should be easy to use and fast.
- For example, Zerodha’s Kite app and Groww’s app are very simple, making it easy for beginners to trade.
- Upstox’s app is also fast and offers good charting tools.
User Interface (UI)
- You should not get confused while using the broker’s platform.
- For example, ICICI Direct’s platform is a bit complex, which can be a challenge for beginners. But Groww and Zerodha’s app are so simple that you can understand everything in 5 minutes.
Charting and Data
- If you are doing technical analysis (like trading by looking at stock price charts), then the broker should have good charting tools.
- Upstox and Angel One have good charting tools, but Groww and 5paisa have a few limited tools.
Speed ​​and Stability
- The broker’s platform should not be slow or crash during market fluctuations.
- Some users have said that Angel One and 5paisa’s platforms are slow at times, while Zerodha and Upstox’s apps are fast.
How is the customer service? – Need help
Availability of support
- If you face any problem while trading, the broker’s customer service should be fast and helpful.
- Groww and ICICI Direct have good customer service, and they help you quickly.
- Zerodha and Upstox’s customer service can be slow at times, especially during busy times.
Contact options
- The broker should have phone, email, and chat support.
- Some brokers (like Angel One) offer a personal relationship manager who advises you during trading.
- Discount brokers (like Zerodha) do not offer such personal services.
Educational resources
- The broker should have educational resources (like videos, articles, and webinars) for beginners.
- Zerodha’s Varsity, Groww’s blogs and 5paisa’s videos are very helpful for beginners. But Upstox lacks such resources.
Types of investment options– See the variety
Stocks and Mutual Funds
- All brokers offer the facility to invest in stocks and mutual funds.
- However, some brokers (like Zerodha and Groww) offer direct investment (direct plans) for mutual funds, which costs you less.
Other options
- Some brokers (like Angel One and 5paisa) offer commodities, IPOs, and derivatives trading, while others (like Groww) are limited to stocks, mutual funds, and digital gold.
- ICICI Direct also offers bonds and other options.
IPOs and Derivatives
- If you want to do IPOs (shares of new companies) or derivatives trading (futures and options), Angel One, Upstox, and 5paisa are good options.
Choose according to your needs
- If you are only going to invest in stocks and mutual funds, then Groww or Zerodha is enough. But if you want all types of investments, then choose Angel One or ICICI Direct.
Reliability and experience– Check the broker’s record
How old is the broker?
- More than a Broker with experience is usually more reliable.
- For example, ICICI Direct and Angel One have been in the market for many years, while Zerodha and Groww are relatively new (but still very popular).
Customer Experience
- Check the customer experience from the posts and online reviews on X.
- For example, Zerodha has over 10 million customers, and has mostly positive reviews about them. But some people find their customer service slow.
Security
- The broker should be SEBI (Securities and Exchange Board of India) registered, which will keep your money safe.
- All the brokers mentioned above are SEBI registered, so you don’t need to worry about this.
Choose according to your needs– beginner or experienced trader?
If you are a beginner
- If you are a beginner, you will want an easy app, low fees, and educational tools. Zerodha, Groww, and Upstox are good options for beginners, as their apps are simple and fees are low.
If you are an experienced trader
- If you are an experienced trader, you will want advanced charting tools, research reports, and more investment options. Angel One and ICICI Direct are good for experienced traders, as they offer personalized advice and more options.
If you have mixed experience
- If you are a beginner and a bit of a veteran, you can try 5paisa or Upstox, as they offer good service at low costs.
Overview
Choosing a broker depends on your financial goals and trading style. If you want to invest for the long term, choose brokers with low fees (like Zerodha). If you want more advice and research, choose full-service brokers (like Angel One). And always remember – the stock market is risky, so invest only according to your risk tolerance. I hope these points help you choose a broker! If you have any more questions, be sure to ask me, I’ll explain in simple terms!
