Stock Broker Definition:
Stock Broker definition in simple terms will be described as below.
” It will act same like any other broker who will do settlement of buying or selling share order between you and stock exchanges.”
You can read further below to understand what do stockbrokers do.
Without Stock Broker, you can not buy or sell shares directly with stock exchanges.
Hence It is mandatory to open a stockbroker account for doing a transaction with stock exchanges.
Two types of broker account you should open for doing a transaction with stock exchanges.
- Demat Account – This account will be used when you purchased stocks for long-term investment.
- Trading Account – This account will be used when you do short-term trading.
The main task of a broker is to check whether you have enough amount of money for doing trading or investing or not.
If you don’t enough amount then your broker will reject your order.
In Trading account broker will provide you leverage up to 10 times for doing intra-day trading.
example: If you have 10,000/- INR in your trading account then with the help of broker leverage you can purchase shares worth of 1,00,000/- INR.
Whenever you do the transaction via broker account then you will have to pay some amount to the broker which is called brokerage charges.
Below are two major Stock exchanges of India.
- Bombay Stock Exchange(BSE)- Sensex
- National Stock Exchange(NSE) – Nifty
I have listed down best stock brokers who work with stock exchanges of India.
- Fyer Security
You can Refer to table for Fyers Vs Zerodha and Sharekhan vs Zerodha broker comparison.
Stock Broker Comparision
|Types of Broker||Discount||Discount||Full-Service|
|Account Opening Fees||0/- INR||500/- INR||750/- INR|
|Equity Trading Charges||20/- or 0.01% of trading amount whichever is lower.||20/- or 0.01% of trading amount whichever is lower.||0.10% of traded amount|
|Equity Delivery Charges||0||0||0.5%|
|Web Platform Support||yes||yes||yes|
|Mobile Application Support||yes||yes||yes|
|Platform Stability||Very High||Low||High|
|(4.5 / 5)||(3 / 5)||(4 / 5)|
As per stock broker definition explained above you can not do any type of transaction in the stock market without broker account.
The broker is playing very crucial role hence before choosing any broker you should check all the parameters mentioned in the above table.
As per above table no doubt Fyers is the best broker in India to do trading or investing with low-cost.
- Quality brokerage service with low-cost.
- Advanced level features.
- Excellent Platform stability
- Great Support
Open free trading account through fyers.
Do you want to open own online business while doing Job?.