The stockbroker is considered to be a firm or company that helps interested parties to enter the stock market to buy & sell shares of different companies of their choice. It is not possible for anyone to enter the stock directly to start the trading sessions. Rather, it is imperative to take the help of the stockbroker. There have emerged hundreds of brokers all over the country to provide various types of services and products.
How does it function?
The stockbroker first helps the client to open up a Demat Account which is an absolute necessity to start trading. The individual can opt for an offline or online mode of trading depending upon his personal preference.
Choosing online, he is able to get a web platform from the broker that can be used from the smartphone or the computer to buy and sell shares at own will and without requiring the help of the broker except for valuable information. On the other hand, with an offline account, the person has to depend upon the booking company to carry out the transactions on his behalf, be it buying or selling, for which he is to give time to time instructions.
The stockbroker provides the variety of services against some nominal fees. Some brokers are found to offer different types of packages these days to their clients. It will be useful to go through the packages to understand what is being offered in details, so as to make a well-informed choice.
The fact is not every person has similar requirements or the budget to invest. Hence, a well-selected package not only helps to make profits but also minimizes losses tremendously and to save on precious fees. As a matter of fact, the fees charged by the brokers are termed as brokerage.
Types of services to give out orders to brokers to sell and buy stocks
Variety of services is offered by the stockbrokers to give out orders, like phone calls, logging into the online trading account and through mobile application service. However, prior to choosing any of the options, the person needs to evaluate with which type he will feel comfortable with, ease of use and faster access. Losing out time will only mean losing out on precious opportunities and money.
Know the stockbroker types
- Full-service stock broking company: They offer a variety of services that come with extra charges like:
- Stock advisory service or stock trading tips
- Margin money facility to buy stocks
- Phone trading facility
- IPO share buying facility
- Portfolio management facility
- Discount stock broking company: They offer services at low fees and focus towards providing the very best trading platform using modern technology. But they do not offer stock advisory or research-based advise and hence their low fees. They are mostly online based and have few numbers of offices established in major cities.
Going through the details and selecting the right stock broking company is of obvious importance to ensure making huge profits.