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India’s domestic benchmark indices, Sensex and Nifty 50 registered their longest bull streak in six years on the 15th of December 2023. This led to the Indian rupee climbing 33 paise against the US dollar – the biggest single-day gain in more than eight months in 2023.
An increasing number of Indians are now investing in the stock market given the economy’s strength and the availability of online investment services to steadily grow their wealth. A crucial step that investors must take while doing the same is selecting a stockbroker.
What is the function of a stockbroker or an online investment service?
Investors cannot directly trade at stock exchanges, and stockbrokers can help them with investing in the stock market. The primary objective of a stockbroker is to make purchases and sell stocks on behalf of the investor. Stockbrokers can work individually or as part of a brokerage firm, and in India, they must be registered under the Securities and Exchange Board of India (SEBI) to be able to function in the capacity of a stockbroker.
What are the key functions of an online stockbroking service?
While there are several ways in which an investor can identify the best stockbroker, they must first understand the functions of a stockbroker before selecting the right one. Here are all the functions performed by an online stockbroker:
- Online brokers help investors manage their portfolio: Online stockbrokers offer portfolio management services. They help investors manage their investment portfolios and help them steadily grow their returns by reducing overall portfolio risk.
- They trade on behalf of the client: Online investment services buy and sell stocks on behalf of the client. Investors can use IndusInd Bank’s cutting-edge INDIE app to make investments and analyse them.
- They offer personalised investment advice: Online stockbrokers like INDIE in partnership with Paytm Money offers to customers based on their risk-taking appetite, investment goals, and expected returns.
How can investors select the best stockbroking service online?
Investors can select the best stockbroking service online by analysing a few factors that impact their earnings directly or indirectly:
- Investors must analyse the fees charged by investment brokers for their online stockbroking services: Online stockbroking services charge a variety of fees from investors in exchange for helping them trade on stock exchanges. It is advisable for investors to opt for online platforms like INDIE that charge no brokerage fees and no account-opening fees.
- The online investment service must have a seamless user interface that facilitates easy trading: The INDIE app has a user-friendly interface that helps traders easily buy and sell shares online. Investors must look for online trading services that are easy to access and must prioritise the ones that do not throw up any technical glitches.
- Investors should compare and analyse the investment products offered by online stockbrokers: Investors should look for a stock broking app that allows them to seamlessly invest in a range of assets such as stocks, Initial Public Offerings (IPO), exchange-traded funds (ETFs), mutual funds, and commodities.
- Customers must prioritise the stockbroker’s customer service: Investors should be able to contact the stockbroker’s customer service team at any hour in case of any query.
- The best stockbroking services online offer high-quality security measures: Investors must also check if the online stockbroking service in question offers security measures such as SSL encryption and two-factor authentication.
Investors who wish to select an online stockbroking service must consider all of the five features mentioned in this article to choose an efficient online stockbroking service.