How A Share Broking Company Helps You To Make Big Bucks In The Equity Market?
Posted by trustline on April 19th, 2017
Savings and investments are two entirely different concepts. The latter is the way to create wealth by investing a part of your income at the right places.
There are numerous investment options like Gold ETF, Mutual Funds, Bonds and Equity Shares, where the equity shares are regarded as one of the best choices of investment. But, in order to begin trading shares and to gauge the maximum benefits one needs to first seek the services of a share broker.
Who is a Stock/ share Broker?
A stock or share broker is an individual or a company who is registered with the SEBI and licensed to buy and sell shares on behalf of their clients. The broker behaves as an agent and so charges a specific fee for rendering his or her services.
This fee is called the brokerage, which is charged in addition to the taxes that are to be paid to the government. While the taxes and service charges remain same for a specific type of stock, the brokerage would vary from one broker to another. Besides taking the headache of buying and selling, a broking firm also presents better opportunities that you might not otherwise find yourself.
What are the desirable characteristics of a share broking Company?
First of all, the stock broker or the stock broker or the share broking company should be registered. Every broker or share broking company displays their registration number that begins with the letters INB for a broker and INS for a sub-broker. This number can be used to gain information about the company. To authenticate the registration details of the company, you can visit the SEBI website.
2. Should be Governed by Rules and Regulations
Securities and Exchange Board of India [SEBI] is the governing body in India. Each and every stock broker in India is governed by SEBI Act, 1992, Securities Contracts (Regulation) Act, 1956. The SEBI was formed in 1988 and was given statutory powers in 1992 through the SEBI Act 1992.
Given the internet era we are in, the share broker should have top notch technology in each and every aspect that involve online share trading platforms as well as the tools used. The share broking company should render multi-platform support that can be used on mobile, laptop and desktop. Also, it should have a well-structured, web-based back office that enables easy access to view contract notes, ledger and reports. Other services like application tracker, online account reactivation, should be easily accessible on their online platforms.
The attention to customer service of the broker can be inferred from the response system. The broking company should be easily accessible.
The broker should ensure that lack of funds should not stop the trader from trading the shares. So, its technology should enable the trader to add funds at any point of time. This is because only with enough funds in the trading account, can one continue to buy shares.
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About the Authortrustline
Joined: April 19th, 2017
Articles Posted: 4
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