All you wanted to know about online discount broker

It is important to understand your discount broker and the services they provide to facilitate and channelize your investments.

Who is discount broker- A discount broker is a stockbroker who brings out buying and selling of stock transactions online in lieu of low commission. He offers non-financial advice but only carries your instructions forward. An online discount broker offers his platform for trading on commission basis which is low in comparison and even on zero brokerage.

Opening an account- Opening an online trading account is easier than opening a bank account. A good broker house opens the trader account for free. Account opening form has been simplified to avoid complications.
• Fill up by hitting open account button- You have to provide normal detail online, such as your name, e-mail, personal numbers and addresses besides ID details etc. Also mention the type of account you require- individual, HUF, partnership, NRI etc
• Financial detail - Fill financial outline about your investment and what way you prefer.
• Take stock of yourself - you need to have knowledge about where to invest and how much to invest before you take the plunge.

Online discount broker-few things to know

• Brokerage- before opting for a particular broker, you need to ascertain the brokerage charged by them. The investor’s best lookout should be for the Zero Brokerage plan wherein the broker charge fixed one time monthly fees or pay per trade but irrespective of the size of the trade. You can buy and sell innumerable numbers of times in a month. With Zero brokerage plan your chances of profitable trade is higher. It’s the best and safest option for online investors.

• Read and understand the agreement - You got to read and understand every terms and conditions written in large or small letters. Compare the fees, deductions and charges besides normal commissions from different discount brokers that you need to be clear, before you begin your business with them. Some brokers offer free of charge account opening them.

• Scope of the work- The right Online broker deal with all stock exchanges and offer customizable platforms such as NEST (Next Gen. Equity trading system),which facilitate smooth trading of diverse assets and offers great services unfailingly to varied clients.Before proceeding check infrastructure of the online discount broker, such as his connectivity, response time, internet speed, back office support etc.
• Speedy transactions and online payment- smart online payment getaway is imperative for crucial investments and speedy transactions. Check your broker caters updated mechanism for transactions and payments.