Stock brokers are mainly associated with brokerage firms that handle transactions for retail and institutional customers. A demat account or dematerialized account is an account which allows investors to hold shares in an digital / electronic form. A depository is similar to a bank. A demat account holds the certificates of financial instruments like shares, bonds, government securities, mutual funds etc. It involves the process of converting physical shares into electronic form for easy access and trading.It enables you to electronically buy and sell shares on the stock market, without having to exchange physical share certificates and paperwork using an online trading platform.
What to see for safe brokers?
- For beginners and inexperienced people the first things to see is the safety of their capital.
- The trading platform should be easy to use and user friendly so that one can trade with convenience.
- Education Material should be provided by broker for learning and training purpose for his clients.
- Start trading with small investment, Use the broker who provides high Intraday margin at Lowest brokerage
- When you are looking to invest your money for long term say 10-15 years, we suggest you to open account in bank arms of brokers such as ICICI direct.
Types of Investors
Intraday Players :
Intraday traders invest their money for a few minutes to a few hours. They do not carry a position overnight. Timely execution of trades is essential for these type traders.
Due to their peculiar investment style, it is necessary that data are accurate and delivered on a real time basis. Additionally it will help if the broker offers real-time market news. Since volumes are big for say traders, they would prefer a trading account with flat fee. These traders generally prefer ZERODHA or UPSTOX which are discount brokers.
For a retail day trader, all costs are important and can become very big-commissions, brokerage charges as well as other charges (exchange chares, GST, SEBI Tax fees for transferring money, etc.) are highly important, as they greatly affect the overall returns.
Investors usually buy a large quantity of shares and keep them for a certain period. That is why they do not need a topnotch order execution system. The facility to set trades in non-market hours is a big plus for such investors. The Value Investor attempts to buy securities far enough below their intrinsic value as to provide a margin of safety. This requires hard work, research, and an ability to not let the culture tell you what to do. Therefore it is more difficult than it might appear to do so. Long term Investors should prefer Full Broker or finally the bank brokers like ICICI direct for safety of their scrips in long term