Focusing on diverse shades of stock broker present in India
Stock broking is the latest professional trend circulating in India and has been reported to have tremendous growth from the past few years. Most of you must have been in search of a stock broker who can help you gain lots of financial benefits.
Defining stock brokers is very simple as their job is to sell and buy stocks, bonds, derivatives, and others in the stock market on behalf of their clients. Other names given to them are registered representatives, broker, or investment advisor (in more professional terms). They are generally worked in collaboration with brokerage firm where there are lots of stock brokers already working. Stock brokers take on the commission for their services as a percentage of each trading activity made by the client.
Kinds of Stock brokers
Generally, there are two categories of stock brokers present in the market.
- Full service broker
Also known as a traditional broker, he offers different services ranging from investment advice, portfolio update, financial planning, and others. Such brokers are famous for providing personalized investment services to customers. That’s why they are comparatively expensive.
- Discount stock broker
A discount stock broker or you can say online brokers don’t provide personalized investment services. Hence, the clients are independent of selecting their own stock as per their choices. There is very minimal interaction between both broker and clients. Therefore, being a reasonable option, it is preferred by those who are generally fee-conscious and like to have their own control over the trade. In India, there are basically two types of discount brokers available based on the pricing plans.
- Per trade flat-rate pricing
In this, the charge of brokers is ‘fixed price brokerage per trade’ regardless of the size of the trade.
- Unlimited monthly/yearly trading plan
Here, most of the brokers offer their fixed rate unlimited rating based on a monthly or annual plan. The unlimited trading is being provided in some selected exchanges and segments at a monthly rate.
- Money manager
If you have a particular range of investments, then money managers are best for you. Their responsibility is just similar to an investor as they work on complete investment and manages on behalf of their clients.
Selecting the right stock broker is a tedious task. But, it can be easy if you work with a top stock broker in India. Check on the various details to make your final decision. These details can be related to their experience, customer reviews, services, charges, and others. Select the one that understands your requirements.