For a beginner in the stock market if you are looking to invest in stocks then NSE or BSE are the two stock markers from which you need to choose. BSE is the oldest stock market, whereas NSE is the biggest stock exchange. Nifty along with Sensex today live are a couple of indices of both markets. With an index, you get a general idea about the stocks and the market performance of the shares. Now the question is for a beginner which one is better NSE or BSE and which is the platform they should be looking to invest in?
The comparison between BSE and NSE
Coming to the comparison between BSE and NSE is as follows
- Trading volume- as seen NSE has an enormous trading volume which means more buyers or sellers are available for stocks. When it is a BSE the volume of stock trading is less
- Liquidity- NSE has more liquidity in comparison to BSE which makes it a better choice. If there is more liquidity it makes trading easy. There are numerous opportunities where stock can be converted to money
- Stock- the volume of stocks in BSE is mammoth as the company stocks turn out to be part of the same. Even the stocks that are part of NSE are part of BSE.
- Derivative contracts- Bank fifty and NSE fifty are traded on the higher side due to the nature of their liquidity. NSE has gone on to monopolize the derivate contrast segment with Nifty.
Which of them do you think is a better option for your NSE or BSE
In simple terms, BSE is suitable for a beginner. On the other hand, NSE is suited more for seasoned investors or traders. If you happen to be an investor, who is looking to invest in shares of new companies, then BSE turns out to be a better choice. But if you happen to be a day trader, share trading can be risky with derivatives, options and futures. For all these reasons NSE turns out to be a viable choice.
When it comes to high-risk online transactions NSE has better software in place. For a conservative investor who would like to sit and watch their investment grow, on all counts BSE turns out to be the best choice. Both BSE and NSE have different methods when it comes to levying a tax. Taking all things into consideration NSE is suitable for low turnovers and BSE is suitable for high-end turnovers. But both of them are secure and are suitable in terms of an obvious choice.
NSE is an obvious choice for day traders. If you happen to be a retail investor and trade in small quantities the choice of an investment platform is not going to matter a lot. The main concern has to be the stock that you are purchasing and in most of the cases the exchange does not have any role to play.