Brokerage charges are not enough for choosing the broking agency | Brokerage firms should be chosen after considering security, bandwidth before considering premium charge
The demand in stock market has increased due to the remarkable improvement in SENSEX trading value and the entering of several companies for public issues. This caused the deficiency of d mat accounts which propelled the applicants of IPOs to hire accounts. Many companies are offering several schemes to attract the users. Most of the people choose the broking agency based on the charges collected by them. But the charges are not enough be considered alone to choose the broking agency.
Every brokerage firm provides the information, suggestions and cautions about investment and trading to attract users. These agencies arrange a separate group employees for research on the market. Thus brokerage agency can be chosen based on the success of the estimation of the research department of the firm. Any brokerage firm can be chosen only on having a success rate of 80% and above.
The functionality of the Brokerage firm
The main complaint observed from most of the online transaction users is the improper functionality of the terminals at the time of high trading. Bandwidth is the major factor in online broking. Hence the information about the bandwidth and experiences of previous users of the brokerage should be considered before registering.
Alternatives for trading online
The alternatives available for trading in case of unavailability of online system should be enquired before choosing the brokerage firm. The facilities available to change the position or leave the position if the online system is not working should be enquired. And the customer service at this time should also be observed.
Security for online trading
The main factor to consider about online trading is security. High security should be arranged for money transfers. Many brokerage firms are tying up with some banks to ensure the maximum security. The time required to transfer the money into account after trading positions should also be enquired.
Various Offers by Brokerage Firms
Brokerage firms announce many offers to attract the depositors. Generally discount rates will be offered to traders who transfer money in large volumes. Recently prepaid card service is introduced. Thus after considering all the above the firm with lowest premium should be chosen.