A trader can’t just directly go to the exchange, to buy stocks and pay for them at the cash counter like we buy biscuits from the grocery store.

A trader can’t just directly go to the exchange, to buy stocks and pay for them at the cash counter like we buy biscuits from the grocery store.

For buying or selling the stocks an authorised middleman is required who will buy and sell stocks on behalf of us.

This authorised middleman is known as the stockbroker.

These days anyone can open accounts online.

Now, let us discuss about the two types of brokers in India:

• Full- service brokers:

These kinds of brokers offer many types of financial services like investment advice, tax advice, financial planning advice, retirement planning etc

They provide expertise solutions to individuals who have full time job and does not have time to plan their investments.

They usually have their own research departments which make research reports on various types of investment tools and provide recommendations to their clients.

They also have their own investment products like mutual funds, exchange traded funds, portfolio management etc.

Some of the examples of this type of broker are ICICI securities, HDFC securities etc.

• Discount brokers:

Discount brokers only provide brokers only provide a trading platform online to facilitate the trading of these financial assets and charge low commission as compared to full-service

Examples of discount brokers are upstox, zerodha, fyers etc.

Stock brokers charge brokerage on each trade. Discount brokers usually charge around Rs. 20 whereas full-service brokers charge higher around 0.5% per trade.

Nowadays days it’s easy to find a stockbroker according to your trading style as there are so many stockbrokers available in India.

When selecting a stock broker one should carefully study and compare between the discount and full time service brokers based on their costs, services and facilities offered by them.

Novice investors should those kinds of brokers who have educational content on their websites so that they keep learning also about the stock market while trading in the same.

After selecting your broker, he will guide you in opening accounts that are needed for trading in the stock market like Demat and trading account and then you can start trading.

Thank you for watching the video!