In India, trading is no longer reserved for a chosen few. In fact, according to a report published by Mint, the number of active traders in India touched 1.2 crores in FY 2022. Some may have entered the markets to multiply their earnings, while others explore it as a full-fledged career.
Regardless of the reason to start your trading journey, selecting the right trading platform is imperative. In the article below, we shall decipher how to choose the best trading platforms in India.
Steps to Choose the Best Trading Platform in India
If you are waiting to commence your stock market success journey, here’s how you can go about the process.
Step 1: Identify your needs
As we mentioned earlier, the reason for you to set up an online trading account is very crucial. The requirements of a trader may vary drastically. Basic questions like your investing goals, the type of trades you want to execute, the type of investor you are (active or passive), and the kind of help you might need from the platform etc., can help you chart your way forward.
Step 2: Narrow down your search
Once you have a fair idea of your requirements, start shortlisting a few trading platforms which are currently doing well.
Step 3: Read reviews
Existing customers can help you decide better. Dig deep into the reviews to understand whether the platform makes the cut to your next step.
Step 4: Compare
This is the most vital part of the entire process. To compare your shortlisted platforms, we suggest you compare them based on a few important aspects. The following section talks in detail about these factors.
Factors to Consider Before Selecting the Right Trading Platform
Remember, there is no one-size-fits-all approach that you can take when it comes to selecting the best trading platform in India. Hence, you must compare your shortlisted options based on the below factors.
User interface
When you have an intuitive and user-friendly interface, your trade execution becomes relatively easy. It not only saves time since most of the important tools and features are easily visible, it also helps you take advantage of the opportunities to earn profits.
Range of instruments available
In India, most of the trading platforms offer several instruments to trade it. Common financial instruments like stocks, commodities, futures and options, bonds, mutual funds, etc., are easily available on most of the platforms. However, some may have wider securities to trade in, which may be a differentiating factor.
Research tools and resources
Research tools are typically anything which allows you to trade effectively. Charting software or technical indicators are common types of research tools which help you trade efficiently. Likewise, knowledge centres or resources on the platform can help you make informed decisions.
Customer support
As a newbie, you may require good customer support to guide or assist you with the platform’s functionality and features. Efficient customer support can help you at the time of crisis and the one which offers multi-channel customer support is surely preferable.
Integration with third-party apps
Stock market trading may involve complexities. Hence, it would help if you opt for platforms that offer integration with third-party apps for algorithmic trading or similar functionalities. Some of the best trading platforms in India offer this access, which is valuable.
Mobile compatibility
Being able to trade on the go is extremely essential in today’s times. A platform that offers full functionality and syncs through mobile apps is highly recommended.
Fee structure
Finally, fee and commission structure is crucial in your decision-making as it may significantly impact your overall returns. Some common fees include trading commissions, account maintenance fees and inactivity fees.
To Conclude
With numerous options available, choosing the right and best trading platform in India can be overwhelming. However, if you consider the above-discussed factors before making a decision, you can find a platform that meets your needs and goals.
