Stock Broker and Their Types – Explained

 

Stock Broker and Their Types – Explained

What is a Stock Broker?

Stock Broker is a medium via which one can trade in Stock Exchanges. They are the licensed or approved authority who executes the trades on behalf of their clients and charges commission to do so. Stock brokers charges commission or fee which is called Brokerage. These charges are paid by clients to their stock brokers. Brokerage charges may vary from broker to broker.

Stock brokers may work individually and through a brokerage firm as well. Stock brokers have good knowledge of stock market. There are number of stock brokers in Indian Stock Market.

Type of Stock brokers:
There are basically two types of stock brokers in India:
• Full-Service Stock Broker
• Discount Stock Broker

1. Full-Service Stock Broker
Full-Service Stock Brokers provides number of services to their customers including Trading, Investment advisory, Portfolio Management, Asset Management etc. Brokerage or commission charged by the full-service stock brokers are generally high as vast services are provided by them. They have superior knowledge of stock market, that’s why they are good at providing investment advisories. 

ICICI Direct, IIFL securirties, Zebu Trade, Aditya Birla, Samco, Goodwill commodities are the famous Full-Service brokers of India.


2. Discount Stock Broker
Discount Stock brokers provides limited services to their customers as they are specialised in trading services. Brokerage or commission charged by the discount brokers are generally lesser than full-service discount broker. Thus, making it best suited for small traders.

Alice Blue, Zerodha, Stoxkart, Upstox, Angel Broking, Fyers, 5 Paisa, Profitmart, Flattrade, Sharekhan are the famous discount brokers of india.

Conclusion:
Both the brokers provide good services to their customers. But it’s up to you that what your requirements are? If you are more into trading, you can go with discount brokers as their brokerage charges are comparatively low. And if you are looking for more stock market services, full-service broker can easily fulfil your needs as per your service requirement. Full-stock broker is a good option if you are choosing to invest for long term in stock market. 


Also read - Things to Keep in Mind before Choosing a Stock Broker

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