4.2How to select a stockbroker
1What is it?
Choose a SEBI-registered broker whose costs, app, service and safety suit you.
2Why does it exist?
Your broker handles your money and shares. A cheap but unreliable app, or an unregistered entity, can cost you more than fees.
3Diagram
| Check | What to look for |
|---|---|
| Registration | SEBI registration number shown; verify on sebi.gov.in |
| Charges | Brokerage on delivery and intraday, account opening, AMC, DP charges |
| Platform | Stable app, simple order screens, good charts |
| Service | Easy support, quick complaint handling |
| Safety | Two-factor login, no pressure to trade, no "tips" |
4Risks
- Some apps push frequent trading or F&O. Stay focused on your plan.
- Never let anyone else operate your account.
5Quick revision
- Verify SEBI registration.
- Compare all charges, not just brokerage.
- Prefer a stable, simple platform.
6Knowledge check
Q1. Where do you verify a broker’s registration?Show answer
On the SEBI website.
Q2. Name two charges to compare besides brokerage.Show answer
AMC (annual maintenance charge), DP charges, account opening fee.
Q3. Should you let a "relationship manager" trade for you?Show answer
No. You should control and approve every trade.