The first thing that you probably ask yourself is – ‘who is a stockbroker?’
A stockbroker is basically the bridge between you and the stock market. He is a professional guide who will help you reach out to different markets with his various set of skills and contacts. Most stockbrokers are usually associated with a brokerage firm, while some prefer to work individually. Both retail and institutional clients need a stockbroker to help them figure out the best way to invest their money. Stockbrokers are generally known by the abundant professional degrees they hold, the license, the security, and the commission they seek. A commission is a fee a stockbroker charges on the client on the profits he makes for them.
There are usually three types of brokerage firms. The service provided by the stockbroker depends on his firm.
The Full-Service Broker – Perhaps the most expensive service, these type of brokers come with the complete package. They handle every single aspect concerning the stock marketing world. They give recommendations of some top-notch companies, and you are sure to get a profit out of it. They can also produce a lot of information which otherwise you do not have access to. A specific person is assigned to help you go through the entire phase. You will have your own personal broker. These brokerage companies will be expensive though, and they tend to charge a higher commission.
The Discount Broker – If you believe that you can find your firms to buy stocks, then you can go ahead with the discount brokers. These discount brokers give you a list of all the stocks they recommend, but you must end up doing your research. These brokers charge slightly lesser commission.
The Online broker – Perhaps you wish to work from home, then investing in online brokers is the newest entry into the market. They charge very less money; they provide online consultancy. They give you research to do, news on investments, and keep you up to date. Some basic knowledge on investing in stock markets is needed before you take up their services.
Stockbrokers are widespread across the country. They are your go-to person when you are ready to take the risk to invest all your hard earned money in stocks. Some of the best stock brokers in India can be found online or through recommendation. A few things to be kept in mind before investing in stocks –
- Volatility: The market can either keep rising on fall all of a sudden. You must be ready to take the risk to invest, investing in top companies where a fall is unlikely to happen a priority.
- Timing: You must know when to invest and when not to invest. When the market is down, you must do your research and figure out if the price will rise again. If you figure out that is going to grow, then it is the best time to invest. Also, you must know when to sell your stocks to ensure you make the highest profit before the market falls again.
A good stock broker guarantees a higher profit rate, hence investing in stockbrokers is vital.