A stockbroker performs purchase and sale orders sent by investors. Stockbrokers tie buyers and sellers of shares, thus creating liquidity in the marketplace. Stockbrokers trade on behalf of persons and companies, and for their services, brokers charge a fixed amount or a commission, which is a proportion of the sale or buying price. The expansion of discount brokers on the Internet has facilitated investment for the general public. But brokers offer service and experience that discount brokers do not provide. Brokers are extensively trained to discover about securities.
There are various types of brokers, and extra licenses are necessary to market specific securities, like commodities. Stockbrokers recommend their clients whether to purchase, sell or hold securities. Good stock brokers systematically investigate any safety on which they make suggestions. And they will take the time to learn about a client’s circumstances to make appropriate recommendations. It is up to individual investors to decide if the fees and commissions they pay to a broker, who consume their returns, value the services provided.
A stockbroker is legally connecting with a brokerage firm that is a registered member of CDSL (Central Depository Services Limited) or NSDL (National Securities Depository Limited).
The primary function of a stockbroker consists of:
- Advise the investor on the appropriate investment in the stock market.
- Carry out the purchase and sale of shares on behalf of the investor.
- If he/she is representing a large company, the stockbroker also plays an essential role in marketing to the customer when writing newspaper and magazine articles.
To carry out all these responsibilities, a stockbroker obtains a commission.
The qualifications needed to be a stockbroker are: The Best Share Broker in India must have the following relevant skill.
- A significant degree in Finance or Business Administration
- Complete knowledge of the current taxes and other financial laws in the country.
- Considerable experience in the operations of the stock market, Forex, futures and options, commodity market operations, etc.
- Aside from any relevant experience and educational qualification, a stock broker must obtain a registered license from the SEBI (Indian Securities and Exchange Board) to begin his practice.
Role of a stockbroker:
Stockbrokers assist peoples in making their investment at the correct time and in the right place. They also help people to manage their investments and money in the stock market. A living being in the stock market form too many years; they know the most excellent way for their money. A stockbroker helps customers create a portfolio and also manage it. Some part-time brokers are charged only a few dollars for their service, but it is always good to go to a full-time service broker. When choosing an agent, always keep regular links with him and ask him about the latest market scenario.
Stockbrokers give advice, manage investments, and purchase securities to meet the financial needs of their clients best.