How to Switch Your Stock Broker Easily

How to Switch Your Stock Broker Easily

Regardless of your level of trading experience, you need a stock broker by your side to execute your trades. However, there comes a time when you have to switch your broker to another. The top reasons are to transfer shares from one demat to another and move your trading account. Learn how you can switch your stock broker easily.

When to Consider Switching Brokers?

There may be several reasons why you might want to switch your current broker.

– High Commissions: If you discover that your present broker’s commissions and costs are excessively high, this will lower your overall profitability.
– Poor Customer Service: Unresponsiveness or a lack of useful support are examples of poor customer service that might be a compelling argument for switching.
– Outdated Digital Interface: If the trading platform is old, hard to use, or prone to technological problems.
– Limited Investment Options: You can also switch the broker when you want to trade in an investment option that is not available to trade.

Transfer Demat Account from One Broker to Another

This is a simple transfer when all the purchased shares have already been credited to your demat account. The below steps are to be followed:
1. Open a New Demat and Trading Account with the new broker. Your new broker will help you with the onboarding process through their online trading and investment platform in india. The transfer process can be started after the account is active.
2. You will need to transfer shares from one demat to another. Here’s how you can do it:
3. Check no pending transactions or trades are waiting for settlement with your earlier broker. Close or cancel all open orders and transfer all unutilized funds from your old trading account to your bank account.
4. If you are closing your old account as it is optional, check for any outstanding dues and settle them to avoid delays. Submit the account closure form to your old broker so that you do not attract any maintenance charge or the account gets misused when your account is lying idle.

Transfer Your Trading Account when You Have Open Positions

You cannot switch from one broker to another if you have open positions in futures and options in your trading account. In such a case, you are required to first close such positions to zero and then close your trading account. Further, If your trading account has a debit balance your broker will not close your account unless you settle the trades. Once that is done, they will close your trading account.

You Have Credits in Your Trading Account

If there are debits, you should ask your current stock broker to adjust the debits against the money, which is supposed to get credited to your account against sold shares. Then, your broker should transfer the stocks you have from your current demat account to your new demat account. In case you have a credit balance, ask your broker to transfer it to your bank account. After these things are done, you should close your account.

Conclusion

The entire process of switching brokers might seem tedious and overwhelming but if you have good reasons for the switch, it might make a huge difference on your portfolio. Moreover, if you are switching to a reputable stock broker they will assist you throughout, ensuring a simple and hassle-free process. When switching, ensure you have access to the cutting-edge online trading and investment platform in India.