SHARETIPSINFO >> Articles Directory >> Who is a stock broker and its offering and With Discount Brokers – Why pay more
Do you think that you can chose your stock all by yourself and that too without any help from brokers? If you think this way, then you are going to commit a blunder. So, let us really know who is a stock broker and its offering so that you can get to know more about them.
Paying through commissions
Stock brokers are paid through commissions. If you are new to the world of stock market then you should never risk yourself by trying your hands all by yourself in the field of Indian stock market. So you need to pay commissions to the stock brokers every time you need to buy or sell stocks. For this reason, stock brokers have become very popular and they are in great demand in the market. Some find stock brokers to be very expensive. But it is always very useful that you spend some cash in order to get a good broker so that you do not lose your money in the market.
Take their advice
It is very important that you take the advice from brokers whenever you need to go for a stock trading. They are the one who make excellent decisions when you go for a stock. There are discount brokers who have great deal of experience in this business and are more educated in the field of stock trading. They also come to know or predict what would happen to the stock market in the coming days. They can help you identify diamonds in the stock business. They come to know what is coming next in a given stock. So, it is very useful to go for a stock broker.
Choosing the right kind of broker
When it comes to choosing the right broker, you should be very careful in choosing them. There are many brokers who are not experienced and they try to befool you and at the end of the day you re left with no money. So, you have come to know who is a stock broker and its offerings. Always remember that small mistake can cost your dearly. So be aware of frauds that show you the wrong path.
If you are new to the stock market, then you should know how to make investment in the market. With discount brokers – why pay more? Yes, there are many discount brokers who could show you the right direction and make you know more about the market and that too in a low cost. So, you need not have to burn a hole in the pocket to know more about the market. Let us have a look about the discount broker and also we will discuss about the types of firms.
About discount brokers
When we say, “discount brokers”, we mean brokers who offer an execution service in the Indian stock market and where you can tell them to buy or sell or whatever and they would do exactly the things you have requested but nothing more than that. There are brokers that provide you with monthly newsletters and that too with recommendations. But you ‘will find some brokers who never trade futures and what’s more, they do not even talk to a futures broker in the stock market. Then there are brokers who would not let you buy, “no-load” mutual funds for commissions which is lesser than 0.5%
Choosing the right broker
In today’s world, you will find many brokers who are very clever and eats up all your money by making false promises and at the end of the day you are bankrupt. So it is very important that you choose your broker very carefully so that you do not fall prey to the wrong person and let your cash go away in the wrong place.
Types of firms
There are different types of firms -- Full service discount is one where it provides service from a full-service broker at about half the cost. Then there is “discount” that do not have any local branch offices or research departments. In this case, they charge commission of about one-third the rice of a full service broker. Then there is “deep discount” that executes only stock and option trades.
So you do not have to pay more because with discount brokers – why pay more?
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