FAQ

Activities in the stock market are not a complex business, providing the services of the stockbroker are an important element to achieve success in the Investments. The information hereunder would establish a good rapport between you and your stockbroker and this will be an important tool to achieve your ultimate investment goals.

1. Is it really risky to invest in stocks, can I reduce my exposure to risk by frequent trading?

You must set the investment goals, the gestation period, assessment of other obligations, and availability of sufficient liquid assets. These parameters will allow you to understand the degree of risk willing to be accepted. The frequent entries of trading will distract you from the above Goals and soon could end up as a cost calculation Trader and the focus to emerge as a successful trader will diminish.

2. What should I expect from my stock broker?
  • A good stock broker must know his clients, to assist them on Investment according to his clients’ financial condition and the goal expected by the client on the investment.

  • It’s the earnest duty of the stockbroker to issue the notice of transaction entered on behalf of his client to the latter. As a client you must be aware that the stock broker does not enter into any transaction without your approval and if found so, the client has the complete right to report such transaction to the Exchange and the statute authorities governing the Stock Broker.

  • A good stock broker must offer value added services viz.. Demat service, Guiding the client on the stock market trend, due transparency on the transactions entered on behalf of the clients, making the client aware on the details of various cost applicable apart from the commission charged by the Stock broker, make certain the services meet the investment objectives of the clients.

  • Your stockbroker must be in a position to answer the questions pertaining to the investment made by you. He should assist you in keeping the track of your investment

  • A good broker should update you with special promotions launched in his office and should not charge hefty commission for the service offered by him and he should educate his clients with the accounting procedure adhered by his office.

  • A good stock broker must update his clients with the types of research work followed in his office and several brokerage schemes offered in his office.

TRADE SMART – DONT BECOME A TRADE MART.