Stock Broker Kya Hai: If you want to learn about the stock market, then get information about the short-term related to it, being aware of them strengthens your financial intelligence. One such term related to the stock market which is very important is that of a stockbroker. About which we will give you the information in today’s article.
In today’s article, you will get to know what is a stock broker, what are the types of stock brokers, how a stock broker works, and how to become a stockbroker.
The role of a stockbroker is most important in the stock market because the investor cannot invest directly in the stock market. The investor can buy and sell shares in the stock market only through the broker. Brokers charge some percentage from their clients for buying and selling shares, which earns them.
If you want to become a stockbroker then read this article till the end, in this, we have provided you with very useful information about stockbrokers. So let’s start this article without taking much of your time and know what is Share Broker.
As you may know, we cannot buy shares directly by going to the stock market. To buy shares from the stock market, we need a company, firm, or intermediate. Those who are these companies, firms or intermediates through whom we can trade in the stock market, are called stock brokers or stock brokers.
A stock broker can also be an organization or a person who is registered with the stock exchange. When we place a shared order, these brokers forward our order to the Bombay Stock Exchange (BSE) or the National Stock Exchange. For this stock brokers charge us some fee which is called brokerage.
Broker means broker. And the stock broker is called the broker of the stock market.
To buy and sell shares in the stock market, the stockbroker charges a fee, which is called brokerage. The brokerage of every stockbroker is different. Most the discount brokers charge a brokerage fee of Rs.20 for a trade in the stock market.
Stock brokers open a Demat account and trading account for their clients through which the investor can trade in the stock market. When the investor places an order in the stock market, which shares to buy, when to buy, and how much to buy, then the stock brokers deliver the orders of their clients to the market.
Let us understand with an example, suppose you have to buy 50 shares of company X, then when you place an order to buy 50 shares of company X in the stock market, the stockbroker delivers your order to the market and sends the order to any such company or person. Finds one to whom X has to sell 50 shares of the company. When the match is done, the shares of X company will come into your Demat account and the money is deducted from your trading account.
Similarly, when you sell shares, the stock broker finds such a person or company in the market who wants to buy the shares of that specific company. And after the match is done, the shares are deducted from your Demat account and the money comes to your trading account. It takes some time to do this process, the trade is completed within a maximum of two days.
There are two main types of stock brokers –
Full-Service Stocks Brokers are those brokers who provide their clients with tips on how to open a Demat account and invest in the stock market, such as when to buy and sell shares, when to trade, facility to invest in IPO, etc.
The customer support of the full-service stockbroker is very good, full service stockbroker has branches in many cities. In order to provide more convenience to its clients, the fees of full service stockbrokers are also high.
Following is the list of some popular Full-Service Stock Brokers in India –
As the name suggests, discount brokers charge much less money from their clients than full-service stockbrokers for trading in the stock market. Discount brokers provide you a platform to invest in the share market but do not give any tips on investing in the share market.
If you want to open your Demat account cheaply, then a discount broker is best for you, many discount brokers also open Demat accounts absolutely free. Discount brokers provide you the facility to invest in IPO, Stocks, Mutual Funds, Digital Gold, etc.
Some of the leading discount brokers in India are as follows –
Apart from this, there are other stockbrokers and trading applications whose information is given here.
Stock brokers provide the following services to their clients –
Before selecting a stockbroker, make sure what type of stockbroker you need. If you do not have any knowledge about the stock market, then you can start investing in the stock market with a full-service stockbroker.
But if you do not want to spend much money on trading then you can open your Demat account with a discount stockbroker. But keep in mind that discount brokers do not give you tips related to the stock market.
Choose a stockbroker who is registered with SEBI and the stock exchange. Because if you go to a broker who is not registered with SEBI and the stock exchange, then fraud can also happen to you.
Before choosing a stockbroker, check all the fees and charges of the broker. Also, check that there are no hidden charges.
Keeping all these things in mind, you can choose a good stock broker, all the broker names we have told you above are reliable stock brokers, you can trade with any of them by opening your Demat account.
To become a stockbroker, you can do any course in the financial market. Subjects like commerce, accounts, economy, and statistics can help you become a stockbroker.
Following are the steps to becoming a stockbroker –
The qualifications to become a stockbroker are given below –
A person can become a stockbroker with the above qualifications, but if the candidate has some broking-related certificates then he can easily become a broker.
Following are some certificate courses to become a stockbroker –
In India, many institutes offer stock broking courses. Following are the top institutes offering Stock Broking courses:
One can give many entrance exams to get admission in better stock broking institutes, some of the entrance exams to get admission in stock broking institute are as follows –
If you have all the above-mentioned qualifications to become a stockbroker, then you can apply to become a stockbroker by the steps given below –
Step 1 – To become a stock broker, first, you have to apply for membership with the stock exchange BSE, NSE. And together you have to pay Membership Fees. You can see Membership Fees in NSE from this link.
Step 2 – When your membership application is approved, then your application is sent to the Membership Selection Committee.
Step 3 – The Membership Selection Committee evaluates the application and sends it to the Member Compliance Department for approval.
Step 4 – After the application is approved, you are sent a proposal letter for Provisional Membership. And finally, you have to register with SEBI. You have to submit the required documents for registration.
Step 5 – To get registered in SEBI, SEBI checks everything about you such as – whether there is an office, manpower, resources, facility, etc.
Step 6 – After completing the registration process with SEBI, you get a Certificate of Registration from SEBI. And you are provided with the trading system.
Apart from all this, you also have to take membership of Depository. It takes a lot of paperwork and money to become a stockbroker. The broker also has to create a mobile application to facilitate trading to the clients. So in this way you can apply to become a stockbroker.
To trade in the stock market, the investor needs an intermediate who trades in the stock market on behalf of the investor, this is called a stockbroker.
The broker is called Dalal.
Different stockbrokers also have different brokerage fees. The brokerage fee of a full-service broker is higher than that of a discount broker.
The salary of stock brokers is not fixed. He gets brokerage commissions from his clients. Whenever his clients buy or sell a stock, he gets a commission of a certain amount. The stock broker can earn a commission of ₹ 50 to ₹ 100 crores per month. It all depends on the number of his customers. The higher the number of customers, the higher the commission.
After reading this article, you must have understood what is a stockbroker and how important is a broker in the stock market. Also, if you want to make a career in a stockbroker, then we have also given that information you in this article.
Trading in the stock market without a broker would have been very difficult. Brokers make it easy for the share investor to trade in the stock market.
That’s all in this article, I hope you must have liked this article written by us. You must also share this article on social media so that more and more people can be helped.
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