Requirement Of A Share Broker In India For Dealing In Shares

A company sells its shares to various investors to raise money for capital expenses. The people who buy these shares become the shareholders of the company. The value of these shares rise or reduce depending on the condition of the market, the opportunities given to businesses by the government, change in governments and many such issues. The shareholder can sell his portion of the shares to another individual or business house depending on his perception of the market. The job of the share broker in India is to help in the buying and selling of these shares.

Types of brokers

Many companies for share broking have been established in the country since the mid-nineties.  Most of the established companies engaged in share brokerage offer full service that include providing hints to the clients regarding the buying and selling of shares, providing reports of research and analysis done on various shares, guiding the investors and many such services. The new entrants in this field are the discount share brokers who offer specific services to their clients as per their requirements.

Difference in charges

The main difference between the two types of brokers is the brokerage charges. The discount brokers charge much less for their services than the full-service brokers. The charges depend on the type of services being offered. The discount brokers offer only the services that the clients want and charge them accordingly. Discount brokers charge for each transaction while the full-service brokers charge a percentage of the total value of the transaction.

Emergence of discount brokers

The emergence of the discount share broker in India began about five years ago and had changed the whole scenario of the share markets in the country. Small investors find it very convenient while dealing with discount brokers. They pay for the services that they require instead of paying for all the services without using its features. The full-service brokers are more suitable for new investors who need guidance and help to buy and sell shares.  

Summary: The services of a share broker in India are essential for buying and selling shares in the stock market as they are authorized to deal on your behalf.