What is Stock Broker And Types Of Stock Broker

What is stock broker and types of stock broker:

What is stock broker and types of stock broker :-

If you want to learn about the stock market, then get information about the short term related to it, being aware of them strengthens your financial intelligence.

One such term related to the stock market which is very important is that of stock broker. About which we will give you information in today’s article.

The role of a stock broker is most important in the stock market because the investor cannot invest directly in the stock market. The investor can buy and sell shares in the stock market only through the stock broker. For buying and selling shares, brokers charge some percentage from their clients, which earns them.

If you want to become a stockbroker then read this article till the end, in this we have provided you very useful information about stockbroker. So let’s start without taking much of your time, let’s know more about this article, What is Stock Broker?

Stock broker

What is a Stock broker ?

As you may know, we cannot buy shares directly by going to the stock market. To buy shares from the stock market, we need a company, firm or intermediate. Those who are these companies, firms or intermediates through whom we can trade in the stock market, they are called stock brokers.

A stock broker can also be an organization or a person who is registered with the stock exchange. When we place a share order, these brokers forward our order to Bombay Stock Exchange (BSE) or National Stock Exchange. For this stock brokers charge us some fee which is called brokerage.

Meaning of broker :-

Stock broker is called the broker of the stock market.

What is brokerage ?

To buy and sell shares in the stock market, the stock broker charges some fee, which is called brokerage. The brokerage of every stockbroker is different. Most of the discount brokers charge a brokerage fee of Rs.20 for a trade in the stock market.

Stock broker

How do stock brokers work :-

Stock brokers open a demat account and trading account for their clients through which the investor can trade in the stock market. When the investor places an order in the stock market, which shares to buy, when to buy, how much to buy, then the stock brokers deliver the orders of their clients to the stock market.

Let us understand with an example, suppose you want to buy 50 shares of a company X, then when you place an order to buy 50 shares of company X in the stock market, the stock broker sends your order to the market and the number of such company or person Finds one to whom X has to sell 50 shares of company. When the match is done, the shares of X company will come in your demat account and the money is deducted from your trading account.

Similarly, when you sell shares, the stock broker finds such a person or company in the market who wants to buy the shares of that specific company. And once the match is done, the shares are deducted from your demat account and the money comes to your trading account. It takes some time to do this process, the trade is completed within a maximum of two days.

Stock broker

How to choose a good stock broker :-

Before selecting a stockbroker, make sure that what type of stockbroker you need. If you do not know anything about the stock market, then you can start investing in the stock market with a full service stockbroker.

But if you do not want to spend much money in trading then you can open your demat account from discount stockbroker. But keep in mind that discount brokers do not give you tips related to the stock market.

Choose a stockbroker who is registered with SEBI and stock exchange. Because if you go to a broker who is not registered with SEBI and stock exchange, then fraud can also happen with you.

Before choosing a stockbroker, check all the fees and charges of the broker. Also check that there are no hidden charges.

Keeping all these things in mind, you can choose a good stock broker, all the broker names we have told you above are reliable stock brokers, you can trade with any of them by opening your demat account.

Also Read :-

https://shareinfobazaar.com/stock-market/
https://shareinfobazaar.com/when-to-buy-shares-in-stock-market/
https://shareinfobazaar.com/how-to-buy-and-sell-shares/

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