broker services

A glance at the type of broker services

Business

Broker firm as the name suggests facilitates a liaison between a buyer and a seller allowing them to purchase or sell stocks. This is a vehicle that a broker operates. The top stock brokers in India tend to earn a commission once the transaction is completed. In the real world it is of paramount importance to avail the services of a stock broker as they are aware of the financial markets and even the market trends. They guide the investors so that they are able to make money in the long run. Even an authority is provided to deal with securities on behalf of the buyers or sellers. There are various types of brokerage services and let us explore them as follows

A full service type broker

Pretty much like the name suggests they are brokers who go on to accomplish all tasks. They are up to date with the stock analysis, consultation, tax advice or even consultation. Most of the firms are expected to charge you a fee or a commission that would once again depend upon the type of services that is being provided.

Discount brokers

Once again they are type of brokers where the commission rates would be a lot lower than the full time broker. Here the type of services would once again be dependent with the size of an account as an investor. A point to consider here is that the rate of services is expected to be lower as they are conducted through a computerized system.

Online brokers

These are brokers who are going to provide you with an online platform in order to conduct the transactions. In most cases this is done via a website. If you are a client you can email or ask questions to the brokers or even go on to conduct a trade most of them are not going to provide you with any investment advice as this is not part of their job.

Captive brokerage

This is a type of brokerage that is not suggested because of the simple reason as they are not going to have the interests of the investors in mind. As they have a link up to certain type of mutual fund companies they are often going to guide the investors to be investing in such type of mutual funds along with the subsidiary that the company goes on own.

An independent broker

The modus operandi of these brokers is that they offer service pretty much on the lines of a full service broker. As they do not have any link up with any sort of mutual fund company they do have the interests of the investors at the back of their heart and even no form of bias exists in the trade that they go on to conduct.

Once you are an investor you need to be aware that the commissions you end up paying would be eating on to your returns. For this reason you need to conduct a proper research about the broker before you choose one.

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