Stock Broker

Stock broker is an individual or organization which have license to buy and sell securities, bonds etc. direct from stock market on behalf of their clients. For trading in stock market, everyone needs a stock broker who helps you to settle deal between company and you. Stock broker provides you demat account where you keep your certificates of shares, securities and bonds in soft copies. So before choosing any stock broker, some key points you should keep in mind.

How can one choose stock broker??

There are two type of stock brokers:-

• Full service provider
• Discounted service provider

Full service broker are generally known as traditional broker. They usually have online & offline presence for customers. They provide you many services like stock research, stock advice, investment banking, asset management etc. along with their investment platform. Offline presence of these broker help investors to solve their query easily. But as their services are so broad, so they usually charge their commission a bit high than discounted broker which deals on percentage basis with taxes. For example, if anyone invest 10000 and commission percentage is 0.30%, so the commission would be Rs. 30. Full service brokers are best for those who has initially started investments.

Discounted service broker are new concept of stock broking. Due to digitization of stock market and reachability of fast internet it has brought an investment online platform where most of the services are available online. Which reduce brokerage percentage and charge flat rates on every transaction. Discounted brokers usually provide investment platform. They don't provide investment banking, asset management or any research and advisory services to their clients. These discounted brokers are best for those who are enough smart in stock market and have good knowledge in investment.

Which broker should you choose??
It depends on an investor which facility he wants for investing. If we are beginner in stock market and we need enough research and analysis before investment, we can choose full service brokers. On the other hand, if we have an experience, knowledge and can research and analyze the stock by our own, we can choose discounted broker as well.

Thanks
Saurav..