Introduction:
Stock broker is the most important intermediary in the stock market It is very important to know about this. It is a corporate entity which is registered as a trading member in the stock exchange and they have the license of stock broking. Stock brokers work under the rules of SEBI.
To invest in the stock market, you are required to open a trading account with a broker. Your trading account is with your broker with the help of which you can buy or sell shares. You can choose your broker as per your choice. Whenever you have to make a deal in the stock market, you contact your broker. You can contact your broker in several ways.
1. You can personally go to your broker's office and tell the dealer sitting there what kind of deal you want to make
2. You can call your broker and tell him about your trade after providing your client ID. After that he will tell you about your deal over the phone itself.
3. You can place your own trades through a trading terminal software. All you have to do is login to your software and you will be able to see the live time price and place orders.
Functions of stock broker:
1. Facility to buy and sell shares in the market.
2. Margin for trading.
3. If you trade in the phone the broker will help you.
4. Issuance of contract notes for each transaction. This note is written proof of the day's transaction.
5. Transferring money between your bank account and trading account.
6. Creating a back office log in, so you can see complete information about your account.
7. The broker charges you some fees for all these facilities Which is called brokerage charge. This fee is different for every broker.