Stock Broking


Stockbroking is a service in which service allows retail and institutional investors to buy and sell equities. Stockbrokers will trade shares both on-exchange and over-the-counter, dependent on where they find the best price.

Stockbroking facilitates the trading of equity, commodity, currency etc. through a stock exchange. They are the members of the stock exchange and regulated by SEBI. An individual cannot go directly to stock exchanges and trade in different securities. A stockbroker is a professional who executes buy and sell orders for stocks and other securities. 

Stockbroking firm will charge a commission on the trades it makes on a client behalf, or for retaining services. It is really important to understand the role of a stockbroker. To buy and sell stocks and securities, other securities requires access to one of the major exchanges such as the NYSE (New York Stock Exchange) or the NASDAQ. To get access to the stock market is expensive.

Stock  Broker

A stockbroker is a middleman who has the authority to buy and sell stocks and securities in a stock exchange on the investor’s behalf. Stocks are traded through exchanges. To buy a stock or sell a stock through exchanges, for this you need a middleman or a company who has the full authority to buy or sell stocks on your behalf. The main role of a broker is to sell or buy shares for a client. They are really important as they provide all the related information that will help the investors make correct investment decisions.

Benefits of Stock Broker-

1. Advice and guidance about managing the money

2. Offer advice on how to grow, invest and maintain money

3. Responsible to execute trades for a client/customer

4. Best in record keeping

5. Provides insight and helps the client to understand things well like advantages, risks etc.

6. Help the client to keep and grow money

7. Executes buying and selling orders of stock

Also Read- Fox Trading

How are they regulated?

Stockbrokers are governed under the Securities and Exchange Board of India Act 1992, Securities Contract Regulations Act, 1956, and also the Securities and Exchange Board of India, 1992. Stockbrokers are also regulated under other rules, regulations and bylaws that SEBI may issue from time to time. It is compulsory for every stockbroker in India needs to be a member of stock exchanges and also requires to be registered with SEBI.

Stockbrokers display their registration details on their websites and even on official documents. To find out more about registered stockbrokers one can visit the SEBI website.


Types of Stock Brokers-

Brokers charge commissions for the task they perform. A stockbroker is a licensed and regulated financial firm that facilitates buying and selling transactions. Stockbrokers are of two different kinds they work and help the clients to deal with the monetary transactions, investments and savings.

  • Full-Service Stock Brokers

These type of firm charges high commissions of assets. They Provide the vast financial services. Full-service brokers have physical offices and locations. They provide financial planning, asset management and banking services.

In some cases full-service brokers provide personal, business and other loan services. The full-service brokers provide and focus more on long-term investors.

  • Discount Stock Brokers

Discount brokers have less different when considered with the full-time brokers especially in providing various services. Discount brokers have smaller commissions for trades. They provide a platform to have more trading and research tools. They cater to active investors and day-traders.

  • Online Stock Brokers

They are also known as direct access brokers who cater to active day trading clients with the small commission. They provide direct-access platforms with few capabilities like market makers, multiple exchange etc. they do not provide you with the physical office locations rather they keep overhead low and pass on cheap rates.  

Understanding Stock Broking

 If you understand the markets, how the SENSEX and NIFTY work, and are an expert in handling finances, then a career and business in Stock Broking is one you can go ahead for. One main role of stockbroking is that the brokers are involved in the buying and selling of stocks in the market, mainly for their clients.

They work on behalf of their clients to provide them with all access to the management of their finances.

The job of these brokers is that they have to be constantly in touch and available with their clients. They work in the direction to provide long-run business with profit. The market growth in India is steady it is a clear sign that people working in stocks and shares are going to have a rewarding career with ample of opportunities in coming future, it is a very good career option.

The world is becoming computerized so the brokers try to provide their client with all the possible ways to manage their finance and help in the growth of profit rate by the use of modern and innovative techniques.

Responsibilities of Stock Broker-

1. Manage the financial portfolio of your clients

2.Best returns on their money by selecting which shares to buy and sell

3. Research well about the financial markets

4. Report and available for the clients

5. Monitor your client’s investments

6. Pitch for a new client

7. Risk management

To be a stockbroker there are no set qualifications, one who wants to become a stockbroker, to become fully qualified broker the person needs to be registered with the Financial Services Authority as this involves passing an exam approved by the FSA.

After this to be a stockbroker a deep understanding of economics and the financial markets, you can stay calm when there is huge opportunity and options as it is all about making correct and big decisions with someone else’s money. This job profile looks for an analytical mind, strong competitive drive and lots of self- motivation.

The process needs lots of concentration and research as before selling the securities through the stock exchange, the companies have to get their securities listed in the stock exchange. The trading process on a Stock Exchange is- a selection of a broker, opening DEMAT account with a depository, placing the order, executing the order, settlement.

Stockbrokers help their clients to buy and sell securities in the share market. They are responsible to evaluate the performance of shares and securities on the stock market and provide recommendations to clients.


Apart from facilitating the buying and selling of stocks from the stock market, stockbrokers offer a lot many other services to their clients like advisory services, limited banking services, other investments etc. stock market brokers are an essential and integral part of the investment of a country.

Apart from stocks, some stockbrokers deal in other securities too. They provide good investment advice related to the products the clients deal in. The stockbrokers not only involved in the buying and selling of stocks from the stock exchanges on behalf of an individual or institute but they also provide valuable investment advice to clients for the profit.

The main role of the stockbroker is to facilitate the buying and selling of stocks at the stock markets, they work in the direction to make the trade possible in stock possible. People go to stockbrokers to understand more and have a clear outlook of how to manage the money in terms of gaining more profit and managing the finance well.