Who is Stock Broker?

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A stock broker is your gateway to stock exchanges. Stock broker is one of the most essential part of share market. It’s very much similar to a organisation(including govt. or private banks and independent discount brokers) registered with SEBI & hold stock broking license with them.

They provide services to an individual trader or investor in opening of a trading & demat account. I will address the role of trading and demat account separately.

Suppose you want to start trading and investing today, however for that you can’t go to National stock exchange‘s office. You can look for broker online or nearby your local area.

For example:

Zerodha who is India’s biggest broker in terms of active client of more than 1.2 million and total client base of 2.23 million. You can easily open a demat and trading account that too online with them.

Here is the link to apply for zerodha online for best trading & demat account service in India. There charges for brokerage as well as account opening(demat and trading) is quite low.

The broker helps you execute your buy and sell trades. Once you open account with them they will provide you, your login-ID (client-id) and password to your mobile no., email id. You can use it to login to their respective trading platforms and start trading online by yourself. If you are not technology driven or do not have much time, you can simply call them and ask them to place orders on your behalf.

However you need to let them know what exactly you want to buy, quantity, at what price etc.

Some brokers will also advise you on what stocks to buy, what stocks to sell and how to invest money in share markets for beginners(of course they take charges). So in simple words Brokers act as a middleman or mediator between you and exchange.