This is an important question for many new traders – which stock exchange should I trade in, BSE or NSE? These are two of the largest stock exchanges in India. However, before we look at which is better, let’s look at the differences between the two:
• Trading volumes – NSE has more trading volumes than BSE. This means that there are more buyers and sellers for stocks in the NSE than the BSE.
• Liquidity – More trading volumes translate into higher liquidity. Hence, NSE offers more liquidity than BSE.
• Number of listed stocks – BSE has more listed companies compared to NSE. All stocks listed with the NSE are also listed with the BSE.
• Taxation – NSE is ideal for traders with lower turnover and BSE for traders with higher turnover.
So, which is better?
The answer to this question depends upon the kind of investor you are. For beginners, BSE is a more suitable option since it offers shares of new companies at lower prices allowing investors to spread their funds and watch their investment grow. On the other hand, NSE is ideal for day traders and seasoned investors who are looking for specific stocks. NSE also has better software to manage high-risk trades.
Hence, if you are beginning your stock investing journey and are unsure about choosing between NSE and BSE, then BSE seems like a better choice. But, if you have been investing in the BSE for a while and are unsure if you should move to BSE, then the differences listed above should help you make a decision.
• Trading volumes – NSE has more trading volumes than BSE. This means that there are more buyers and sellers for stocks in the NSE than the BSE.
• Liquidity – More trading volumes translate into higher liquidity. Hence, NSE offers more liquidity than BSE.
• Number of listed stocks – BSE has more listed companies compared to NSE. All stocks listed with the NSE are also listed with the BSE.
• Taxation – NSE is ideal for traders with lower turnover and BSE for traders with higher turnover.
So, which is better?
The answer to this question depends upon the kind of investor you are. For beginners, BSE is a more suitable option since it offers shares of new companies at lower prices allowing investors to spread their funds and watch their investment grow. On the other hand, NSE is ideal for day traders and seasoned investors who are looking for specific stocks. NSE also has better software to manage high-risk trades.
Hence, if you are beginning your stock investing journey and are unsure about choosing between NSE and BSE, then BSE seems like a better choice. But, if you have been investing in the BSE for a while and are unsure if you should move to BSE, then the differences listed above should help you make a decision.