What is a broker?

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A broker is a person who acts as an intermediary between the buyer and the seller of the securities. If you want to invest in the securities market, you should know the market ups and downs, risks associated, and the growth rate but if you don’t have the knowledge about the market than what to do? You need to find a person who has proper knowledge about the market and its fluctuations. Now the question is who is the person and how to invest in the securities market? The answer is to contact a stockbroker. The broker is the person who helps to invest in the market by charging a fee called brokerage. You just need to explain your preference to your broker and how much risk are you willing to take. Brokers will match your needs with the type of securities and helps to contact the buyer.

The person who wants to sell his securities in the stock market can also contact the broker for dealing in the securities market. The broker is the link between the buyer and the seller. He matches the needs of buyers and sellers. A normal person cant work as a broker. The broker needs a license for performing its functions. A broker is an independent person whose main purpose is to bring buyers and sellers together for dealing with securities and charge commission from both parties.

Benefits of contacting a stockbroker

  • Helps to find a buyer from whom you can purchase the securities.
  • Match your needs and preferences with the type of securities
  • Saves time and money by providing the best deal
  • Provide a variety of options. You can select according to your needs.
  • Brokers already have complete knowledge of the market. He can compare different securities and select the best for you by charging nominal rates.
  • Reducing the selling and distribution cost of securities

Types of broker

  1. Stockbroker- stockbrokers are the persons who deal in shares, debentures, bonds, and securities in a stock market. Such a broker knows the Indian Stock Market and also have a license to deal in the securities market.
  2. Discount broker- the discount broker is a person who only focuses on buying and selling of securities in a stock market. Their main purpose is to bring buyers and sellers together. They don’t provide any other services or suggestions to the buyer or the seller.
  3. Full-service broker- these brokers not only focus on buying and selling but also focus on recommendations and market research. They are experts in market research and future prices. The commission provides these types of brokers is more than other types of brokers because they provide additional services along with the basic services provided by brokers.
  4. Online brokers- in the era of digitalization, brokerage services are provided by brokers online. Instead of contacting the person, you can meet the broker online and attain the brokerage services. These types of brokers are gaining popularity day by day because we can purchase and sell securities in the stock market while sitting at a home. The dematerialization of securities is also introduced for electronic securities.
  5. Commission-free broker- these types of brokers offering zero charges for providing brokerage services.
  6. Insurance broker- insurance broker is a person who works with different insurance companies. Their main purpose is to find a suitable policy for their clients.
  7. Real estate broker- these brokers deal in purchasing and selling of property. They help the seller to sell the property and the buyer to purchase the property.
  8. High-end broker- these type of brokers have their team of experts who know the stock market and also they study the market fluctuations. They provide expert services to their clients what is the right time to purchase or sell the security.

It is a wise decision to choose the broker for dealing in the stock market. They help to decide on purchasing and selling of securities.

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