What is Stock Broker ? Types of Stock Brokers in India 2022 

What is Stock Broker ? Types of Stock Brokers in India 2022 

Friends, you must have heard the name of stock brokers, but do you know what is a stock broker and how many types of stock brokers are there, if your answer is no and you want more information about stock brokers, then you can read our article Stay tuned till the end, so let’s start this article without delay.

What is a stock broker ?

What is a stock broker As you know that we cannot buy shares by going directly from the stock market, so we people need any company or any form or any intermediary, then the company or the person working when our Orders go to the market. These are called stock brokers.

A stock broker can be an individual, a company or a form which is registered with the stock exchange. Simply put, the company which sends our orders on NSE or BSE, for which that company charges some fees, and completes our investing process, all these processes are called brokerage or brokerage, so the company which takes brokerage And places our order in the stock market, to the same company.

It is called stock broker. Many people do not understand its definition and they do not know the meaning of stockbroker properly. That is why he does not like to get any work done by the stockbroker, although it is a part of investment, without this any investment proves to be incomplete.

How do stock brokers work ? 

How Stock Brokers Work When we buy and sell shares from the stock market, for this we open a share market trading account in the stockbroker. Through this, we give orders to the stock market which shares we have to buy, when to buy, in what quantity to buy and when to sell.

So those stockbrokers they delete our orders in the market within the next second. Let us now try to understand how this process works, suppose we have placed an order from our trading account that we have to buy 20 shares of a company, if we place this order, the stockbroker will place your order in the market.

Then the market will take that company. Or he will find the person who is selling the shares of his A company so what’s up, you are buying the shares and that person is selling the shares, then after processing your match order, he will clear your order to you will do, then the intermediary who works for the stockbroker.

In simple words, a stockbroker acts as a type of broker who connects the clients and the sellers and charges a small commission from both the sides, or charges for the addition. Without this, any investment is incomplete, there will hardly be any investment that will be completed without the help of a stockbroker.

Almost all investments require a stockbroker and they do their job, only then any investing process can be completed.

What are the types of stock brokers ?

Friends, on the basis of the stock market, the stock broker is divided into two parts and we have written the names of those two parts and information about them step by step below, so you should read and understand them carefully.

  • Full-Service Broker
  • Discount Stock Broker

Full-Service Broker

As the name suggests, this type of broker provides full service, they do not only provide the facility of buy and sell. In this, SEBA provides more investors and traders like,

Stock advisory services in which full service broker gives you information about which shares to buy, how much quantity to buy and when to sell them. Whenever you are buying a stock, if you are short of money to buy those stocks, then it provides you the facility of margin money.

You can place your order by calling on phone, internet banking or with the help of online application. If you are buying shares through IPO (Initial Public Offering) , then this type of broker gives you the facility to buy shares quickly.

Full service broker also gives you the facility of portfolio management.

Discount Stock Broker

this is the part of a stock broker, As the name suggests, it is a discount broker. Meaning, whatever your order will be in it, whatever brokerage fee will be there, it will very less. Here in less money your order will buy active core in the market.

Discount brokers will not give you any service, you have to do your own research and place the order. You will have to manage the portfolio on your own.

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I hope that you have liked this article of mine very much and with the help of this article, you must have got information about what is Stock Broker, In this article we have tried to tell you about every information related to Stock Broker, using the simplest language possible.

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