The best broker in India is the middleman between the stock exchange and the customer. When any individuals or any corporation want to purchase or sell shares or stocks they should go through a brokerage firm because only the members of a brokerage firm has the power to do these transactions. A stock broker can determine the best deal for their clients after gathering all the financial information. An experienced broker can do this by understanding the level of risk a client will be comfortable with. The broker then will send the order to the floor through computer or a phone.
Once a transaction is over, the broker will let the client know about the result. These brokers charge commission on every transaction they perform, this is their monthly income. The commission that they get is also known as the ‘brokerage’ and it is charged against the work they provide to their client. No one needs a university degree to become a professional stock broker. But the best broker in India needs a license. Most of the brokers appear for an exam after they have been there in a brokerage firm for more than 4 months. In this brokerage firm they get an on job training. The General Securities Registered Representative Examination is a test that the broker needs to pass to obtain a government license.
There are 2 types of stock broker in India. The first one is a full service broker and the other is a discount broker. Now which one you will choose completely depends on your decisions. A full service broker will offer a variety of financial advices, some financial products, advice on investment, and some field research report and will also make an investment strategy. They charge high rate of commission than a discount broker. They will obviously give you stocks, annuities, bonds, insurance and derivatives. A full service broker charges how often you trade and not according to how well your stock profile looks. Whereas a discount brokers are the one who will purchase and sell the product with much less commission. They offer offline as well as online services regarding the sale of stocks and shares.
Are the brokers present in India reliable?
This is the most important question for you to answer before you involve yourself in the business. Reliability is the word which all brokers should provide his clients. They have to be present to attend your calls. A good broker will be ready with a solution if you face any kind of problems. This is something which is more important than money. Reliable stock broker will provide you peace of mind. He is totally responsible for your money. Remember it is your hard earned money; you just cannot afford to waste it, by facing any kind of loss. He will update you about the financial market every now and then. If you cannot grow faith on your stock broker then it is high time you change him and look for someone who is reliable.