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What is Stock Broker, Types Of Stock Broker, Discount Broker Vs Full Service Broker

What is a Stock Broker?

Today we will learn that what is a stock broker. What are the types of stockbrokers and what kind of facilities do they provide? Also, we will know what we should keep in mind while opening a Demat or trading account. So let's start.

    Stock Broker

    When we want to buy a share, then we cannot place our order directly to the stock market. We need a broker. We order our stock market with the help of a stock market trading account, which share we have to buy in how much quantity and when to sell which share. And the stockbroker works to complete all our buy and sell orders in the stock market. And the fee he charges from us in return is called brokerage.

    Stock Broker

    Stock Broker like – ICICI DIRECT, SHERKHAN, ANGEL BROKING, ZERODHA. A person is a company or a firm, which accesses the stock market to order its clients to buy and sell shares.

    When we want to buy a share, then we cannot place our order directly to the stock market, we need a broker.

    We order our stock market with the help of a stock market trading account, which share we have to buy in how much quantity and when to sell which share. And the stockbroker works to complete all our buy and sell orders in the stock market and in return, the fee he charges from us is called brokerage.

    Nowadays the buying and selling of shares is done completely with the help of the internet. And as soon as we place an order to buy and sell a stock with our broker, the broker delivers that order to the stock market in the next second. And the stock market completes our order by matching our order with any other counter order, all this happens Very fast.

    How does the order for Buying and Selling stock are placed to Stock Broker?

    To place orders to the stockbroker to buy and sell stocks, we can place orders as per the convenience provided by the stockbroker, such as-

    • By calling the stockbroker.
    • By Login with the help of internet in the trading account given by the stockbroker.
    • Through mobile application-based trading account offered by the stockbroker.

    Pay Attention

    It is important to keep in mind that today we all use internet more than mobile and we have mobile with us all the time. Therefore, while opening our account with the broker, we should keep in mind that the mobile trading application provided by the broker should be working properly and its user interface is also very easy so that we can easily place the order and Always keep an eye on the investment.

    TYPE OF STOCK BROKER

    TYPE OF STOCK BROKER

    There are MAINLY two types of stockbrokers in India depending on the service provided by the stockbroker.
    1. Full-service Stock Broker
    2. Discount Broker

    Let us now talk about these two in some detail-

    FULL-SERVICE STOCK BROKER

    Full-service brokers provide a lot of services to their clients. Due to providing full service, their brokerage fee is also very high. Some of the most popular stock brokers among full-service brokers are ICICI DIRECT, SHERKHAN, and ANGEL BROKING.

    Some of the main services offered by a full service stockbroker, such as –

    Stock Advisory Service- (Which stock to buy and when to sell).
    • Margin money facility for buying stocks.
    • Phone pay trade facility.
    • Facility to buy shares through IPO.
    • Facility of Portfolio Management.

    DISCOUNT STOCK BROKER

    DISCOUNT stock brokers offer their clients the service of buying and selling shares at very low brokerage. The more focus of a discount broker is to offer its customers the best trading platform with very low brokerage by using technology.
    Some of the most popular stock brokers in DISCOUNT stock brokers are – ZERODHA, 5paisa, Upstox and Groww.

    Discount Broker charge less fees because they do not provide any kind of stock advisory and RESEARCH service. And their offices are also very few, all their work is done online. Even the work of opening ACCOUNT is also done online.

    Which account is opened with the stockbroker?

    Normally two accounts are opened with Stock Broker:
    1. Trading Account
    2. Demat Account

    When you open your trading and Demat account with a bank, normally your savings account is required in that bank. And some banks also provide the facility of 3 in one account to their customers, in which Demat and Trading Account is also opened along with Saving Account.

    Some tips to choose the right stockbroker

    When you think of starting investing, the biggest question is which broker is the best. We will give some tips to help you find the right broker.
    • Choose the broker which is the most reliable.
    • Choose a broker who charges low brokerage.
    • Choose the broker who offers the best mobile app and customer service.
    • Choose a broker that offers a platform with a good user interface.
    • Choose a broker who provides tools for stock or company analysis.

    Our Recommendation

    You should open your demat account & Invest and trade with Kite by Zerodha, India’s largest retail stockbroker. Open your account now. 

    Open Demat Account Free
    • Best Service Provider in India. 
    • Best User interface in Kite Mobile App. 
    • Up to 90% Saving on Brokerage
    • Quick account opening. 
    • Advance trading platform. 
    • Good customer support. 


    For other important information related to the stock market, you can click on the links given below.  

    We not only hope but also have full confidence that you must have liked this information related to a stockbroker.  If you have any suggestions for us then comment below.



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