When you want to buy or sell shares on BSE or NSE stock exchange, you can’t trade directly.
You will need the help of share market brokers.
A share market broker is an individual or a firm who executes a buy or sell transaction on
your behalf for a fee or commission. They are registered members of the Securities and
Exchange Board of India (SEBI). They offer services to both individual and institutional
investors. There are two types of stock brokers:
Discount Brokers: They offer vanilla or no-frills services. They operate through an online
trading platform and charge a lesser fee or commission. They do not perform any other
stock broking activity for you.
Full-Service Brokers: They offer end-to-end services, right from trading to advisory. They
charge significantly a higher fee than discount brokers. It makes more sense to avail
their services if your portfolio size is large and includes different types of investments.
What Does a Stock Broker Do?
The services of a stock broker entail the following:
1. Buy and Sell
This is the basic online service that all stock brokers facilitate for investors. They may also
assist you to set up a trading and Demat account if you are a first-time trader.
2. Stock Research
It can be a time-consuming activity to conduct detailed research on which stocks to buy.
Since stock brokers have insider market insights and monitor market trends closely, they can
do comprehensive research on various stocks, their past performance, company vision,
board of directors, and other parameters and provide the right advice accordingly.