A stock broker is an intermediary who enables buying and selling of stocks and securities in a stock exchange on behalf of financial institutions and firms. Needless to say, all the stocks are traded through major stock exchanges. However, an investor cannot directly trade in stock exchanges.
But how do you buy and sell stocks in a stock market?
To successfully carry the transaction of stocks trading, you are required with an intermediary who helps you in purchasing and selling the stocks in a much better way. This intermediary can be a person or a company that is authorised to do the transaction of stocks on your behalf. Such company or person is known as a stock broker in India.
A stock broker in India can be anything a stockbroking firm or an independent firm; known for providing stockbroking services for the customers.
In general, a stock broker is the one who performs a service for the investor. The main job of a stockbroker is to buy and sell stocks for a client. Also, top stock broker in Indore helps their customers to get a detailed insight into a stock that helps investors to make informed decisions about the investment.
Before we step into the importance of stock broker, let’s figure out how to choose the best online stock broker:
Selecting the right online stock broker is an extremely crucial decision you will make as an investor. This is because a perfect stock broker not only help investors to determine about the stocks but also guides them to pick the best stocks which are capable enough to generate better returns for them.
If you are a newbie who wants to invest in stock market trading, it is suggested to pick the best online stock broker, as with the help of it, you can handle all the stock market operations at a finger tips. Although there are different types of broker available online, choosing the best one is still a challenging task.
Selecting The Best Online Stock Broker
1. Comprehend your basics
Understanding needs while investing
in the stock market is the foremost point. That’s why opt for a stock broker who clearly understands what you expect from stock trading
. Many online stock brokers charge high brokerage charges which may not satisfy new investors. Hence, it is suggested to go through the stockbroker who provides excellent stock trading
services at affordable brokerage charges. Swastika; top stock broker in Indore offers cutting edge stock broking services at low brokerage charges.
2. Stock Market Pricing
It is important to check the pricing of a stock broker before deciding to move further. Try to find out the AMC annual maintenance charges. These charges vary from broker to broker. Some of the stock brokers charge a very high amount while there are some stock brokers, who charge quite low brokerage charges.
3. Range of Trading Segments
Different investors have different priorities in trading financial products such as Equity, commodities, IPOs, FDs and more. Go for the stock broker who has different financial products.
4. Fund Transfer Process
Select a stock broker which comes with 3 in 1 demat account as the stock broker provides seamless fund transfer services which allow investors to trade with ease. Conversely, if you open demat account with a non-bank stock broker, then you will need to transfer money every time you start trading.
5. The Expertise Of Research Team
While selecting a stock broker, it would be ideal to check the research team provided by the stock broker first. This is because the research reports generated by the stock broker help investors in picking the best stocks that would give them high returns.
Importance of a Top Stock Broker in India
Margin Financing:
In the share trading, margin trading refers to the process where individual investors buy more stocks than they can afford. Also known as intraday trading, margin trading allows all the transaction of stocks (buying and selling) in a single day.
Now intraday’s stock brokers are well capitalised. Here, top stock broker in Indore lends capital to the traders who want to leverage their positions. A margin amount is to be paid by traders after which they are allowed to take positions in the stock market. Generally, the margin amount is 50%.
Recommend the Best Deals
Mostly, a broker deals in all types of securities. The best stock broker in Madhya Pradesh suggests the best deals to its clients such as when to buy or sell a stock. Majorly suggest the stocks on the basis of advisory, and research reports suggested by them.
Handling Trade
A stock broker receives orders from multiple traders and places those orders on a stock exchange. Once the order is successfully placed, trades will get to know about it. However, this is the case with full-service stock broker of India, online brokers facilitate trades with trading platforms where traders can place their orders on their own.
All the orders are automatically visible in your Demat account once they are successfully placed and executed.
Paid On Commission
Full-service stock brokers charge commissions in the form of brokerage for the services they provide to traders. This charge is some percentage of the trader they provide to clients. Discount brokers charge a flat commission which is pre-decided on every executed order.
Services provided by Best Stock Broker in India
Let’s take a quick tour of the services provided by stockbrokers to their clients in a broader way.
1. Top Stock brokers are the ones who give accurate advice on the stocks i.e which stocks to buy or not. This is because they have valuable knowledge about stocks and other financial securities. They do proper research on the stocks and the volatility of the stock market before making any recommendations.
1. Top stock broker in India have the right to buy and sell shares on behalf of their clients and handle their related work. They also hold and maintain all the records of all transactions, statements and more.
2. Stockbrokers also answer client’s queries regarding investment. Also, top stock broker in India actively manage the client's portfolio and do proper diversification regarding stocks.3. Stockbrokers are highly updated with the stock market news, and hence they inform their client if any new update or opportunity comes in the stock market.
4. Stockbroker also helps a client to make changes in investment strategies depending on the market conditions.
Buying and Selling shares Online in India?
Now, many of you have acknowledged the fact that how share trading can play a valuable role in your life. Yes, you heard it right. Investing in online share trading gives you bundles of opportunities to invest in different types of stocks.
Once you gain appropriate knowledge about stock trading , you can easily perform transactions with such an ease and book a significant amount of profit. In case you need any help, you can easily connect with an online stock broker, during the initial days. Once you become a thorough expert in buying and selling shares then you can try to do it on your own.
Here are 5 steps through which you can buy shares online:
PAN Card
For the demat account opening process, you must require the important document as a proof i.e PAN Card. PAN stands for permanent account number; a primary requirement for entering any financial transaction across any country. It is a valid ID proof that is issued by the government of India.
Depository Participants
NSDL (National Securities Depository Limited) and CSDL (Central Security Depositories Limited) are the primary depository participants of India that helps you to store the shares you hold. They provide you with a unique account pertaining to the same. Many people often get confused with the term Demat and Trading account. Demat account shows the number of shares you hold. Trading account on the other hand, allows you to buy and sell shares that you currently have.
Picking the right stock broker
If you are a beginner then it is suggested to consult a full service trusted broker. This is because the full service broker gives you guidance on the day to day aspects of share trading. These stock brokers are SEBI (Security and Exchange Board of India) certified and given licence to act as a broker. In other words, a broker is an intermediary between an independent stock broking firm and share trader.
Ways to Perform Buying and Selling of Shares
This is how you perform in buying and selling of shares. For instance, you have bought shares of Rs 890 with the assistance of a broker, the broker will ensure you regarding the purchase order or stop order. Also, they help you to execute the stop order, if you want to stop the transactions during the day.
How Best Stock Broker in India regulated?
Top Stock broker in India are regulated under the Securities and Exchange Board of India Act 1992, Securities Contract Regulations Act, 1956, and also the Securities and Exchange Board of India (Stockbrokers and sub-brokers Regulations), 1992.
In addition to this, Top Stock broker in India is also regulated under other regulations and bylaws that SEBI may issue from time to time.
Important Note:
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 get any enquiry about registration, one can also visit the SEBI website and find details of registered stockbrokers.
Types of stockbrokers
Now you all know about a stock broker and how they are regulated, let's take a quick tour of the types of stock brokers.
Based on the types of service provided, there are majorly two types of stockbrokers- full-service stockbrokers and a discount stockbroker.
Full-service stockbrokers:
Full-service stockbrokers offer full trading services along with a wide range of add ons to their clients. They are traditional brokers who provide advisory services, research reports and relationship managers aside from assisting you in buying and selling shares. Furthermore, best stock broker in Madhya Pradesh also provides a variety of services including IPO, mutual fund, insurance , loans etc.
Many investors preferred to take services from full-service brokers. The foremost reason is that top stock broker in Madhya Pradesh are established players as they have opened their branches all over the country. Therefore, it becomes easier for the clients to use these branches for services and advice.Discount stockbrokers:
Discount stockbrokers, on the other hand, do not provide any advisory services and research facilities. They have come into existence because of the easy accessibility and usage of the internet. These top stock broker in India, provide an online trading platform for their clients. And hence, discount brokers charge flat brokerage charges which is mostly a flat fee.
In the world of digitalisation, all brokerages have started to provide online stock trading services to their clients where users can log in to the stock trading account with a username and password for the execution of trades.
Online stock broking services are faster than traditional service as transactions can occur with the internet.
Also, Online stockbroking services provide stockbrokers with a facility to connect with the clients through emails, chatbox and provide real-time updates.After getting a lot of information regarding stockbrokers, it is also essential to take a quick glance at a sub-broker.
A sub-broker is appointed by brokers who act on the behalf of a trading member or stockbroker for helping investors regarding the dealing of financial securities through trading members.
A sub-broker is a person or agent who is not a member of the stock exchange. Sub brokers don't have direct permission to deal in securities. Firstly they need to register with SEBI to trade in financial securities.
Rights and Responsibilities of Stock Broker, Clients and Authorised Persons
All the parties involved in trading services whether it is clients authorised persons or stock brokers, all are governed by SEBI. This states that all the transactions, liabilities involved in share trading must maintain clarity and transparency.
Here is a list of rights and responsibilities of the top stock broker in India:
1. Firstly, the stockbrokers, authorised persons and clients all are bound by the rules and regulations set by SEBI.
2. For clients, it is suggested to invest only in financial instruments that are approved and listed by SEBI.
3. It is a major responsibility of the client to confirm the authority and capacity of a stock broker before investing
through them.
4. Also, stock brokers have a responsibility to update themselves before presenting any information, executing transactions on their behalf.
5. Stock brokers must make their customers aware of the stock trading methods, liabilities, capacity, policies, rules under which stock brokers have to work.
6. For clients, it is requested to clear all the queries related to the account opening process and provide all the documents carefully read investment guidelines.
7. Stock brokers must maintain all the client-related documents but shall not disclose all the details with others.
Code of Conduct For Stock BrokersIntegrity:
A stockbroker shall maintain full integrity, fairness and promptitude in the conduct of all the business.
Exercise of Due Skill and Care:
A stock broker shall act with care, diligence and due skill in the conduct of all his business.
Manipulation:
A stock broker shall not indulge in deceptive schemes, fraudulent transactions or spread rumours in order to distort market equilibrium or making any personal gains.
Malpractices:
A stock broker shall not create a false market either single or in concert with others. Also, stock brokers shall not indulge in any act detrimental to investors interest that leads to interference with the fair or smooth functioning of the market.
A stock broker shall not involve himself in excessive speculative business in the market beyond reasonable business not commensurate with his financial soundness.
Compliance with Statutory Requirements
A stock broker shall abide by all the provisions of the Act and the rules, regulations issued by the Government, the board and the stock exchange from time to time as may be applicable to him.
Becoming a Stockbroker
As there are no specific educational requirements for becoming a stock broker, there are certain courses that may help you leverage the benefits of a stock trading job.
Education
The minimum qualification for becoming a stock broker is graduation with at least 2 years of experience in a stock broking firm. Many stock brokers also have a master's degree called MBA in finance which helps them to get knowledge of mathematics, statistics, qualitative analysis and more.
Experience
Stock brokers often gain experience in stock training by working in a stock broking firm as it will help them to get a deep understanding of regulation of stock market, financial markets and accounting practices.
Exams
Brokers should also pass entrance exam that is available in this field:
BSE Certifications on Central Depository
BSE Certifications on Derivative ExchangeBSE Certifications on Currency Futures
BSE Certifications on Security Market
Benefits of Trading With Swastika
Swastika Investmart; top stock broker in Indore is a leading stock broking company that provides the best stock market online trading platform in India. There are bundles of benefits to trading online with Swastika because it offers the best yet outstanding trading platform called Just Trade Web.
Swastika’s Justrade Web trading terminal is widely used by regular traders and investors as it comprises all the crucial features along with various risk management tools.
Unlike other stock trading platforms that required extra functions to download, Swastika’s Just Trade Web can be easily installed without a flick of a switch. In other words, you don't need to download or set up any file. With the best stock broker in Madhya Pradesh all you need is an electronic device such as a laptop or desktop and you are ready to go.
Before we dig deep into the benefits of Trading with Swastika; top stock broker in India, it would be best to discuss the company first.
Swastika investmart is known for providing excellent stock trading services along with 360-degree research leaving the customers happy and satisfied.
Incepted in 1992, Swastika is a member of the equity and derivative segment of BSE and NSE. Also, it acts as a depository participant with CDSL and NSDL. Such things make Swastika as the top stock broker in Indore.
Providing excellent stock trading services with top-notch research, credit against property and shares along with the investment banking are the biggest reasons that make Swastika extraordinary yet the best stock broker in Madhya Pradesh compared to other stockbroking companies of India. one of the best stock broking companies of India.
Besides, we took an initiative to provide various mainstream online certification courses to empower retail traders and investors.
We have been eagerly working for the past few years to provide the best yet effective trading experience to all our clients. Therefore, we thought it would be great if we introduced some latest features that can assist you in your trading journey. Here, we will uncover some additional features of Justrade Web trading platform.
Noteworthy Features of Swastika Online Trading Platform
Our Justrade Web offers seamless connectivity and easy fund transfer options to the stock traders to trade online without interruption.
Watch List
It is estimated that around 4000 stocks get updated everyday and hence it is difficult to keep a track on all of them. However, with the watchlist feature of Swastika’s Justrade Web, you can easily detect any stock of your interest. Besides, the features come with a facility that allows the client to monitor any stock as per your pattern that you have used before.
Order Book
Swastika firmly believes in providing all the stock related information with our clients that makes it easy to choose which type of stocks are better for investments.
Swastika’s; the best stock broker in Madhya Pradesh order book provides all the information related to stocks and the bids placed on various stocks. Also, it provides traders with a facility to continuously monitor stocks such as buying and selling of shares thus helps in making more informed trading decisions such as which stock is worth buying at a particular moment.
Charting Tools
Swastika’s web trading platform Justrade Web offers numerous advanced charting features such as drawing tools, indicators, pie charts, candlesticks and more. These specialised tools are used by experienced traders as with the help of it, they can predict the supply and demand of securities. Also, they can compare and analyze stock price movements.
Tips & Recommendation
If you are a newbie into stock trading, it would be ideal to use Swastika’s tips and recommendation feature as it helps traders to create a strong portfolio by providing real-time updates of preferred stocks as well as new stocks. Swastika’s advisory services and research reports are best in class which makes Swastika the top stock broker in Indore.
Risk Management
Trading often comes with certain risks. If you are a regular trader, there are a lot of chances, you may suffer from a loss. To prevent you from such situations, a risk management tool is always there for you.
A risk management tool helps you to determine a stock’s performance by its potential strength. Also, it will warn you whether to buy or not to buy a particular stock.
Charges Levied by Swastika Investmart
Swastika investmart (best stock broker in Madhya Pradesh) offers the lowest trading charges to date. For the opening of trading and Demat accounts, Swastika charges flat Rs 250. There are no AMU (annual maintenance charges) required if you are trading through Swastika’s Trade terminal.
Swastika’s Brokerage Charges
Swastika offers lowest brokerage charges for trading services:
For the equity segment: Swastika charges 0.02% intraday and 0.2% delivery. Nevertheless, the charges are negotiable for the traders who trade in large volumes.
For equity futures: The brokerage charges are 0.02% for the turnover. Likewise the equity segment, the brokerage costs are negotiable for large trade volumes.
For equity option and currency option: the charges are Rs 25 per lot.
For currency futures and commodity trading, Swastika charges 0.02% for turnover and is negotiable.
Benefits of using Swastika Investmart as your Broker
Integrity and Transparency:
At Swastika, we offer complete transparency about trades and transactions of our customers. The top stock broker in Indore provide experienced relationship managers to our clients, who guide them throughout their investment decisions.
Besides, Swastika investmart aka best stock broker in Madhya Pradesh provides excellent financial advisory services for the new clients who just entered into the stock market trading.
Comprehensive Services:
At Swastika, they pledged to offer quality and timely services to clients thereby providing all the services under one roof.
The customer need not worry about their transactions and fund transfers, swastika successfully manages all the operations in a hassle freeway.
Research Report:
We have a strong team of research analysts who are excellent at their researching skills. Our researchers go through fundamental and technical analysis to get the real catch of a stock's trends, stock positions, stock pricing and more. They have considerable years of experience and hence the research prepared by analysts are trusted by many investors.
Portfolio Services:
Swastika investmart (top stock broker in India) offers a wide range of portfolio services including share trading, IPO launching, dealing in currency and commodity trading, mutual fund investments, merchant banking, NBFS and more.
Knowledge Center:
Knowledge is a valuable component for all of us. Keeping in mind, Swastika aka best stock broker in Madhya Pradesh comes with a knowledge centre where it offers several learning modules such as fundamental analysis, advanced technical analysis tutorial along with the certification courses. This will help beginners to learn more about share trading.
Conclusion
Indian capital market is considered as one of the most organized and regulated sectors. The foremost reason for the excellent organisation is SEBI. Whether you are an investor or a stock broker, you should work in the stock trading according to the guidelines governed by SEBI or else you may find it in a difficult spot.
Want to learn more about stock market investment? Try Swastika Investmart and invest in bountiful stocks with zero hassle. Swastika is a renowned yet top stock broker in India that offers extraordinary stock trading services to its clients. Headquartered in Indore, Swastika Investmart or (top stock broker in Indore) Ltd provides the smarter way to trade in the stock market.
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A content writer with an interest in digital marketing