Here’s How Sharemint Help You To Select Best Broker Which Suits You
What is 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
Top 3 Popular Brokers
Zerodha
Features
- Discount Broker
- Opening Fees : 300
- AMC : 300
- Zerodha Kite
Groww
Feautres
- Discount Broker
- Opening Fees : Free
- AMC : Free
- Groww app
Upstox
Feautres
- Discount Broker
- Opening Fees : Free
- AMC : Free
- Upstox app
What is 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. However, an investor cannot directly trade in stock exchanges. To buy a stock or sell a stock through exchanges, you need an intermediary who will help you with the transaction. This middleman can be a person or a company who is authorised to buy and sell stocks and other securities on your behalf.
Such a person or a company is known as a stockbroker. Stockbrokers are generally associated with a stockbroking firm, but they can also be an independent person. For providing this service, a stockbroker charges a commission or a fee.
Are You Searching For Best Brokers ?
Are you looking for the best stock broker in India, get here the complete list of top stock brokers in India with detail review.
Due to impressive returns, multiple investment options and easy liquidity, people have been rushing towards stock market and searching the best stock broker in India for investments.
Stock investment is a technical process, hence requires you to connect with the top brokers in India. Stock trading can be risky, so it needs trading support.
| RANK | Broker Name | Delivery Charges | Features | Account Opening Link |
|---|---|---|---|---|
| 1 | Zerodha | Zero | Best Trading App Ever | Open Demat |
| 2 | Upstox | 2.5 % | Ratan Tata Backed Brokerage Firm | Open Demat |
| 3 | Groww | 0.05 % | Easy To Use App | Open Demat |
| 4 | Angel One | Zero | Best Full Service Broker For Margin Trader | Open Demat |
| 5 | ICICI Direct | Zero | Oldest Full Service Broker | Open Demat |
Frequently Asked Questions
What Stock Broker Do ?
Whenever you hear the term ‘broker’ you would think about a middleman or an agent that makes two parties meet for a deal. A stock broker, in the same way, is a middleman between the listed companies and the investor (or trader). A stock broker is the only medium through which your demat account is opened i.e. you need to compulsorily register with a broker for opening your demat account.The broker also provides you with a platform for trading and investing. Your broker is authorized to buy and sell securities on your behalf at the exchanges.
Basically, a stock broker would provide you services in exchange of brokerage or annual fee or commission
Can We Trust Stock Brokers ?
The stock brokers in India are registered with a depository (either CDSL or NSDL) and SEBI proactively monitors the activities of brokers. So, the brokers can be trusted in general, but it is always better to go through their Broker reviews before investing with them.
What Happen If Stock Broker Goes Bankrupt, Ran, Bust ?
Firstly, we wish that never happens with your broker. But, practically speaking you should be prepared for any such circumstance. You should be aware of certain conditions in case your stock broker fails:
- There is a settlement period of T+2 days in case of shares. This means that shares that you purchase will reflect in your demat account after 2 business days.
- Now, if the shares are already there in your demat account, you don’t need to worry because you can transfer your account to another broker (there’s a separate procedure for this that takes some time) with your holdings intact.
- But, if your transaction is still in the settlement period and the broker goes bust, you will lose your shares (or, it’s a rare case that they may be recovered).
- If you received leverage or margin by pledging your shares, then also you will lose them.
- Your wallet should not contain extra funds or balance because that balance is also lost if the broker fails.
Being aware and informed will help you at least minimise the loss if not curtail it completely.