Stock Market

What Is Stock Broker and What does a stock broker do?

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Stock Broker: Everyone must have heard about the stock market at some point or the other and must have also heard about your stock broker, only then the question must have come in your mind that what is this stock broker (What Is Stock Broker In Hindi) and What Stock Broker Works (Stock Broker Kya Kam krta Hai) So friends, we will try to answer some questions related to stock broker with the help of this article.

Before knowing about Stock Broker, you should know about share market, what is share market and how it works.

After this Stock Broker is the sequel to Investing in Share Market, about which we will explain in detail here and also learn about all the important things related to Stock Broker.


Everyone must have thought of investing in the stock market at one time or another, but you can invest in the stock market only when you open a trading account through a stockbroker and what is a stockbroker and these stocks Why is it important for the market, we will know about it only here.

So let’s know what is a stockbroker (What Is Stock Broker In Hindi) and what does a stockbroker do.

What is a Stock Broker?

Stock broker performs a very important function in the share market. Actually, it is a financial professional who fulfills orders to buy and sell stocks in the stock market on behalf of customers. You can neither sell nor buy shares of any company without them, for this you need a middleman. The same is called stock broker.

Stock brokers are registered by SEBI and follow all the rules of stock exchange, they send the order of the investor in the stock market to BSE(Bombay Stock Exchange) or NSE(National Stock Exchange) after that Whoever wants to buy the shares and who wants to sell the shares, their orders are matched, so that the purchased shares go to the demat account and the money is debited from the trading account. And the person who was selling the shares gets money deposited in the trading account in exchange for the shares.

Also, a stockbroker is also known as a Registered Representative or an Investment Advisor. Most stockbrokers work for a brokerage firm and handle transactions for many individual and institutional clients.

Whenever an order is fulfilled, the stock broker charges its fee, which is called brokerage. This brokerage is different for all stock brokers, there are many types of stock brokers in India, about which we will know in detail in the next article.

Stock Broker Meaning

Stock Broker Meaning In Hindi: In clear words, a stock broker is called a stock market broker, it places orders on behalf of customers to buy and sell on the stock exchange and that order To make ends meet, they charge a fee which is called brokerage.

To buy or sell a stock, one of the major stock exchanges is required. To buy and sell on these exchanges you need to have a demat and trading account and these demat and trading accounts are also opened by the stock broker.


Friends, now we will know what does a stock broker work and what is its role in the share market.

What does a stockbroker do?

By the way, fulfills buy and sell orders on the stock exchange. But apart from this, the broker also deals with all kinds of tasks in the financial world. Such as collecting data on stocks and securities, complying with current market conditions and being aware of all legal regulations.

They work as a helper to the investors, they complete all the transactions for them. Apart from this, they also maintain records for accounting purposes.

A broker also acts as an advisor to the clients. They provide information and suggestions to their clients so that they can invest in the right place and look at the financial circumstances of the client and tailor the investment strategy as per their requirement.

How many types of stock brokers are there

Friends, there are two types of stock brokers, which we have mentioned below, we all know that we cannot buy and sell stock in the stock market, so stock broker is necessary for any stock market. for this type of work. Now it is a matter of which stock broker to choose and which stock broker provides good facilities. Let’s know.

  1. Full Service Stock Broker/Full Service Stock Broker
  2. Discount Stock Broker/Discount Stock Broker

Let us now know about these two types of stockbroker in detail and understand which stockbroker is more convenient and what is the difference between them.

#1. Full Service Stock Broker

Flower Service Stock Broker Also known as Traditional Broker, these stockbrokers provide many facilities to the customer like Stock Advisory, Advice on Investing in IPOs, Investment Plans, Margin Facility and Handling Portofolio.

Flower Service Stock broker’s fees are very high because they provide many services related to investment in share market. These full service brokers give information right from opening a demat account to which stocks to invest in. Along with this, they always recommend good returning stocks in your portfolio, which gives you maximum profit.

Flower service stock broker has branches in most cities

Features of Flower Service Stock Broker

  • Flower Service Stock Broker gives you the facility to open 3 in 1 account which consists of Saving Account, Demat Account and Trading Account.
  • Provides investment advice in share market.
  • Flower Service Stockbroker’s customer service is very good.
  • They prepare Long Term Investment Plans for the investor.

Who are some of the leading flower service stock brokers in India

  1. HDFC Securities
  2. Angel Broking
  3. ICICI Direct
  4. Share Khan
  5. Kotak Securities

#2. Discount Stock Broker

Discount stockbrokers are cheaper than full service stockbrokers which allow you to open Demat and Trading accounts at very low cost. But discount stock brokers do not give you any facility like stock advisory and research and also they do not manage client’s portfolio.

Discount Stock Brokers are very much liked by the people because they provide the users with the latest technology, online trading softwares, and websites, through which it becomes very easy to invest in the stock market along with opening demat and trading accounts. They do all the work of buying and selling shares online.

Discount stockbrokers provide the facility to buy and sell shares at very low brokerage fees. Earlier when a buyer wanted to invest money in shares, he would call his brokerage firm and request to buy the shares of the company. But due to online discount stockbroker, that work is done sitting at home through online mobile app or website.

Discount Stock Broker Features

  • Provides instant Demat account and Trading account opening facility.
  • Discount stockbroker’s commission is less as compared to full service stockbroker.
  • Discount The stockbroker also provides facilities like margin and leverage.
  • Discount stockbroker provides services to the active day traders with the lowest commission.
  • These brokers provide better customer support to their clients. offer.

Who are some of the leading discount stock brokers in India

  • Zerodha
  • Upstox(RKSV SECURITIES INDIA PVT LTD)(Upstox Review In English)
  • Groww
  • 5Paisa(5PAISA CAPITAL LTD)

All these discount stockbrokers have some famousBest App of the stock market.


So friends, till now we have known what is a stockbroker, what does a stockbroker work and what are the types of stockbroker, now we will know whether the stockbroker charges his service fee. So let’s know.

Does the stockbroker charge his service fee?

Yes, stock brokers charge their service fee which is also known as brokerage fee. Brokerage fee is the fee that a stockbroker charges you for buying and selling a stock. The brokerage depends on the stockbroker and most of the stock broker’s service charges are different.

In addition, the stockbroker’s service includes fees for opening and trading accounts, regular trading fees, Annual Maintenance Charges (AMC), and fees for searching investment data.

Full Service Broker Discount stock broker’s fees vary widely and full service stockbroker charges higher service fee than discount stockbroker.

Full service broker is paid commission on transaction basis. The average fee of a full service broker is 5000-6000. Apart from this, the full service stockbroker also charges a service fee for research, care and advice.

The same discount stockbrokers generally do not offer investment advice. Discount brokers fees for opening demat and trading accounts range from ₹200 to ₹500, but some discount stockbrokers offer free demat and trading account opening.

However, they keep changing offers as discount brokers constantly reduce their fees to attract more clients and gain market share.

The brokerage fee of discount stockbroker is also low, due to which many people open account with discount broker as well.

Do the stockbrokers also provide margin facility?

Yes, stock brokers also provide margin facility.

The same is also called margin trading. It is the process in which investors spend more on stocks than their spending power. In margin trading, investors usually borrow money from a broker to buy stocks. You can think of it as a loan.

Margin trading allows you to buy more stocks than usual. To trade on it, you need a margin account. 

If you do intraday trading then margin facility is beneficial for you. If you want the convenience of margin exposure sitting at home, then you should open an account with a discount stock broker. Because these brokers give you margin exposure up to five times.

To trade with a margin account, you first need to request your full service stockbroker to open a margin account. For this you have to pay a certain amount in cash to the broker, also known as minimum margin.


Read Also:

10+ Best Share Market Books to learn share market

SmallCase: New and easy technique For investing in Share market 

conclusion

Stock broker is very important link to invest in stock market because without stock broker you cannot invest in stock market and choosing a good stock broker is also very important because stock broker only approves your investment which You can buy shares.

You can also know about a good stock broker from the website of  SEBI (Securities and Exchange Board of India) and the more work your broker takes, the more you benefit.

So friends, this was the complete information about what is a stockbroker, if you still have any question or problem regarding the stockbroker, then you can comment us.

Bihar Feed Team

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