Are you confused about whether you should start trading or not? You may be shocked to know that for FY22, individual investors’ active participation in stock exchange trading has touched the figure of 1.2 crores.
The number is enough to state the popularity of trading in India and you can do that too. To start trading, you will need to open trading account. Before you open a trading account, look at certain aspects of this trading account and strategize it to get the best deal.
5 Effective Strategies to Select a Trading Account
If you are planning to start trading and open a new trading account, then here are some strategies that you can follow for choosing the best trading account.
Simple Account Opening Procedure
You can easily open a trading account from any stock broker with the help of the e-KYC process. Due to this, you don’t need to visit a branch and wait in long queues to fill out the form for a trading account.
The time required for e-KYC is lesser than in the traditional way of opening an account. Make sure the broker you are choosing is following the same.
Consider Trading Account Opening Fees
You may open a stock trading account for investment purposes or trading purposes but there are certain costs attached to the trading account. The charges are deducted from your trading account on an annual basis.
This includes the annual DP maintenance charges, brokerage charges, bounced cheque charges, declined transaction charges, charges for making copies of your certificates etc. When you plan to open a trading account, research these charges.
Brokerage and Trade commissions
Are you an investor or trader? You will come to know why we are asking this. With the emergence of discount brokers, there is tough competition among various brokers to offer low brokerage.
If you are an investor then there is not much chance of a reduction of brokerage fees as brokers are unable to earn much out of delivery trading. However, if you are into trading then you should convince the broker to reduce your brokerage fees.
Brokers are now providing online analytics services when you open trading account with them. These analytics services offer you industry analysis, real-time value comparisons, stock recommendations etc.
Thus, consider this factor to know the benefits you can avail of.
Do you do research and compare prices before buying any product online? Similarly before opening a trading account try to do thorough research about the broker’s reputation.
Check out the broker’s website and read reviews about them. Also, you can ask about the user experience of the existing users. You can also check its rating from its app’s ratings.
If you are new to trading, you should do proper research before you open trading account. You need to expand your research horizon to learn which broker offers you the best services. Also, don’t forget to check the various charges you may require to pay while making your decision.
Also Read: Are Crypto Trading Bots Effective?