Hello friends, I am Laxman, and in this article, we see what is a Stock Broker and also different types of stockbroker. Which Stock Broker is right for us, and which are we have to avoid stockbrokers.
What is Stock Broker?
Stock Broker is the broker who takes the brokerage of transfer of stock from one Investor to another. let’s understand with an example,
Geeta takes the share of reliance Jio by ordering from his broker. When other investors want to sell shares, they tell their broker. In today’s computer world, both brokers put the buy order with price and sell order with the price.
When they match each other order then the share from an investor to his broker account is transferred and money is transferred from the broker to the investor as well Geeta takes the share from his investor and gives the money to
a broker, This process takes 2 days for transfer share. Taking money giving share is done online.
Different Types of Stock Broker:
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Full-time broker
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Discount broker
let’s understand in detail.
Full-time Broker:
The broker gives you the full time of his knowledge, technique, strategy to identify the Investment opportunity as well as tips of stock, for you and they take the brokerage for that.
If your broker is honest then you will be making money. If your broker thinks about himself then you will be making money for the broker. (What is a Stock Broker? Different types)
This broker gives you the big benefit and also the big loss. But commonsense is that if any broker work for himself so be careful with this type of broker to avoid the big loss. Choose carefully this type of broker.
Discount Broker:
This Broker is not working for you. They will provide you with his Demat account and trading account.
In this case, you have to identify your Investment and trade on his provided platform. In benefit of this broker is that you will avoid bad advice and loss from the broker. (What is a Stock Broker? Different types)
This type of broker is benefited from his charges and takes minimum charges as compared to a full-time broker.
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This is all about the What is a stockbroker and the Different types of the broker.
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