What is meant by Stock Broker and how they work?

What is meant by Stock Broker and how they work?

Friends, whenever you hear about the stock market, you will always get to hear about the stock broker. And you must be wondering what is a stockbroker, what is a stock broker, what is its job in the stock market? So let us tell you in our post today what is the work of a stock broker in the stock market?

The work of a broker is very important in the stock market, the stockbroker acts as a link between the stock exchange and the investor. Without a broker, no investor can put his deal in the stock market. If you want to step into the stock market, you need a demat account and a trading account, and both these accounts can be opened by a stock broker. It is also the job of any stock broker to take orders for buy or sell by any investor to the stock exchange.

Let us understand this as an example, suppose friends have two investors and Babli. Bunty wants to buy 50 shares of xyz company for ₹ 100, and Bubbly wants to sell 50 shares of xyz company for ₹ 100. In such a situation, both Bunty and Bubbly should tell their stock broker through their mobile phone through their mobile platform, or through the website to their stock broker or order that I want to sell or buy shares of xyz company. On order, Bunty and Babli’s brokers will deliver the order to the stock exchange. After this, after getting the price of both of these on the stock exchange, the trade will be confirmed, and the shares of the company sold by Bubbly will now go to his demat account through Bunty’s broker, and whatever their price will be Bunty’s demat From account to broker will go to demat account of bubbly. So you must know what is the job of a broker. Apart from this, it is the job of the broker to make the demat account and trading account available to its customers.

Does the stock broker charge its service fee?
You must be wondering if the stock broker charges for all these deals? So yes stock broker charges you a fixed fee for every order which we call brokerage (brokerage). Friends, each stock broker has a different brokerage. It depends on your stock broker how much brokerage he takes.

What are the types of Stock Brokers? Types of Stock Brokers
There are two main types of stock brokers based on the service offered by the stock broker in India.
1. Full-Service Broker

2. Discount Stock Broker

Let us now tell you what is the difference between these two stock brokers.

Full-Service Broker

Full service stock broker fees are very high. The main reason for this is that full service stock brokers provide a lot of service to their clients. Such as stock advisory (ie when to buy which shares, when to sell), the facility of margin money to buy stocks, the facility to trade on mobile phones, the facility to invest in IPO, besides the customer service of full time stock broker is considered very good. All of these brokers or branches are in many cities. Some of the most popular brokers in full service stock brokers are – ICICI DIRECT, SHERKHAN, HFL, HDFC SECURITIES LTD etc.

Discount Stock Broker

Friends discount stock brokers are much cheaper than full service stock brokers. Discount stock brokers allow their clients to buy and sell shares with very low brokerage. Discount stock brokers charge less because they do not provide stock advisory and research facilities to their clients. And they also have offices in some big cities. Much of their work is done online, their work to open an account is also done online, so their fees are less. There are some popular discount brokers in India – ZERODHA, SOUTH ASIAN STOCK LTD, MASTER CAPITAL SERVICES LTD etc.

TOP STOCK BROKER LIST

TYPE OF SERVICE Broker Name Number of Clients
FULL ICICI SECURITIES LTD 5,91,504
FULL HDFC SECURITIES LTD 4,68,844
FULL SHAREKHAN LTD 3,50,509
FULL KOTAK SECURITIES LTD 2,57,563
FULL AXIS SECURITIES LTD 2,36,534
FULL INDIA INFOLINE LTD 2,22,348
FULL ANGEL BROKING PVT LTD 2,08,545
FULL MOTILAL OSWAL SECURITIES LTD 1,92,095
FULL KARVY STOCK BROKING LTD 1,74,690
FULL GEOJIT BNP PARIBAS FINANCIALSERVICES LTD 1,62,414
DISCOUNT ZERODHA 1,28,736
DISCOUNT MASTER CAPITAL SERVICES LTD 33,034
DISCOUNT RKSV SECURITIES INDIA PVT LTD 13,774
DISCOUNT VNS FINANCE & CAPITAL SERVICES LTD 10,944
DISCOUNT R K GLOBAL SHARES & SECURITIES LTD 9,136
DISCOUNT SOUTH ASIAN STOCKS LTD 8,821
DISCOUNT 5PAISA CAPITAL LTD 2,264
DISCOUNT COMPOSITE INVESTMENTS PVT LTD 1,532
DISCOUNT ACHIIEVERS EQUITIES LTD 1,516

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