If you wish to invest in stocks of companies in India, you have to do it through the stock exchanges. The two most prominent stock exchanges in India are - Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). However, for a common man, it’s not possible to buy the stocks directly from the exchange.

They need middlemen to execute the trade; such middlemen are known as ‘stock brokers’.
The role of a stock broker is to facilitate the buying and selling of stocks at the stock markets, on behalf of investors. There are many prominent stock brokerage firms in India through which you can trade in stock exchanges.

Types of Brokers

Based on the types of clients they cater to, stock brokers are usually classified into two distinct categories:

  • Institutional Stock Brokers
  • Institutional Stock brokers have large institutions and companies as their clients and trade in securities on behalf of them. They offer services such as investment banking, securities services (IPO or secondary offerings), advisory services, and brokerage services to institutional investors.

  • Personal Stockbrokers
  • Personal stockbrokers offer investment banking, advisory services and brokerage services to small businesses and individual investors.

Services offered by a Stock Market Broker

Apart from facilitating the buying and selling of stocks from the stock market, stock brokers also offer a gamut of services to their clients such as:

  • Advisory Services
  • Stock Market brokers possess expertise related to the working of stock market, performance of stocks, market trends, and so on. Besides, they have access to the data base and research findings of brokerage firms that they are associated with. Hence, they can provide excellent investment advice to their clients.

  • Limited banking services
  • Stock market brokers are authorized to provide limited banking services such as interest-bearing accounts, electronic deposits, and withdrawals. The clients can avail such banking-related services from the stock brokers by paying them a nominal brokerage charge.

  • Other Investments
  • Apart from stocks, many stock brokers also deal in other securities such as mutual funds, bonds, exchange traded funds, futures, options and commodity trading. They also provide investment advice related to all these products, to their clients.
Conclusion
Stock market brokers are an integral part of the investment scenario of a country. They not only facilitate buying and selling of stocks from the stock exchanges on behalf of individual or institutional investors but also offer valuable investment advice to their clients.

Click here to open an online trading account.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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