How to Choose Stock Brokerage

Service Provider Choosing Tips

Reputation – 

While choosing the service provider for opening share trading account the first thing that you should consider is the reputation of the company in the market. You can search and read the reviews about the company on the internet, you can read about the performance of the company at the financial newspapers and magazines, you can ask your friends – do whatever but make sure you subscribe the service of the company that has a proven track record and a name in the market.

Service – 

Then of course you should consider the standard of service that the company is offering. That will take into consideration the quality and efficiency of the system that they use, the expertise of the staffs and the extent of service they are offering. Be sure that the company is offering trading facilities at the stock markets that you are actually interested in trading. Besides you should also enquire if the website is supporting derivative trading, IPO investment, mutual fund investment and so on. The more you get is better as you would not need to go somewhere else for these investments.

 Security -

The security of your personal and banking details and financial information is a matter of great concerns. Especially if you are trading online and using online fund transfer facilities you need to be extra careful. Make sure that the company implements best online security measures to protect your financial and personal data when you are trading online through their website.

 Brokerage Fees – 

The market for online trading companies are too much competitive as there are more and more companies coming to this business. This is of course good news for the investors. You can now expect really comparative pricing for the online trading services. So while opening the online trading account you need to make sure you find the best deal that is available in the market.

 Consultancy service –

Before opening the trading account with a certain company you should look for the consultancy and research and analysis services that are offered by the company. You can in fact keep a close watch on the daily tips that these companies offer and see who is providing the most profitable stock tips. These consultancy and stock tips are provided by the firms at free of cost and you can really benefit from them for making some profitable stock market investments.

General Market Advice

1. Never chase a stock.
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are undervalued.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share is the key.
8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to grow.
13. Buy when everyone is selling and sell when everyone buys.
14. Invest a fixed amount each month.