With the economy in the state that it is in, the aam admi have to try that much harder to achieve real financial security. The only way to do that is to save more and then channelize those savings into profitable investments. Certainly, investing in the capital markets (like shares, bonds, debentures etc) is one of the more ways to achieve this. To do that however, one must choose the right financial services intermediary or stock broking firm. Here are a few tips on how to go about it.
1) Focus on broking: Not so long ago, there were just simple stock brokers and broking firms. They were essentially intermediaries between the market and the investor. Even now, this activity constitutes the heart of what most full fledged financial services intermediaries do. A client must evaluate comparative brokerage rates being offered by the various entities in the industry. Specific focus must be laid on online brokerage rates.
2) Internet and Mobile Trading: Even if you prefer old fashion style branch broking, one must make sure that the intermediary offers internet and mobile trading facilities. Besides being able to invest on the go and from a convenient place, this channel is more transparent and allows you greater control and flexibility in handling your portfolio. One must, however, make sure that the mobile and internet trading platforms meets regulatory privacy and cyber security standard.
3) Value Added Services: Besides the bare bones of broking, one must ensure that the intermediary offers value added services like Loan Against Shares(LAS), Margin Trading (MTF), equity research report etc. They could go a long way in enhancing one’s trading experience.
4) Tax Saving Plans and other Products: To avoid the inconvenience of going to multiple places to serve one’s varied financial needs, one must ensure that the intermediary being chosen must offer full fledged financail services including distribution of reputed financial products. The savvy investor of today will want to diversify into Mutual Funds, Insurance, currency derivatives etc to balance risk/return factors.
At Geojit BNP Paribas we have a tradition of providing trusted and transparent services for over 25 years. As of March 2014, we have over 7 lakh clients, 495 offices and more than 15,000 crore as Assets Under Custody and management. Our wide variety of products and services include Equities, Derivatives, Currency Futures, Mutual Funds, Life Insurance & General Insurance, IPOs, Portfolio Management Services, Margin Trading, Loans against Shares etc. We pioneered both Internet and mobile trading (in 2000 and 2009 respectively) in India.