Who is a Stockbroker?
A stockbroker is a registered member of the stock exchange authorized to engage in securities market activities on behalf of clients. Stock brokers help to open a Demat account with the Depositories like NSDL or CSDL. They provide trading software to trade in stock exchange. They facilitate the buying and selling of stocks and charge a commission for their services.
Two type of stock brokers in India
Full-Service Brokers – Traditional Brokers
Traditional brokers offer a range of services, including trading, research, and advisory support for stocks, commodities, and currency. They charge commissions based on a percentage of each executed trade. Additionally, these brokers assist in investments such as Forex, Mutual Funds, IPOs, FDs, Bonds, and Insurance.
Discount Brokers – Budget Brokers
Discount brokers focus solely on providing trading facilities for clients, catering to a ‘do-it-yourself’ approach. They offer low brokerage fees, high-speed execution, and user-friendly platforms for trading in stocks, commodities, and currency derivatives.
