An individual is an agent who takes part in selling and buying for its customer’s securities, and stocks are called a stockbroker. These stockbrokers may be a part of any company as a franchise or individual licensed by the SEBI. The term is used to represent both companies that are in securities business as well as their employees who are officially registered members carrying out work in favor of the brokerage. A number of the investors, though, consider that the broker is an individual they ring up as they intend to trade stocks or invest in them. A lot of individual brokers perform in the office spaces that are far distant from the places meant for stock trading.
Looks for the best deal
Any stockbroker functions as a representative of the customer, haunting for the profitable deals to sell and purchase stocks. A number of brokers trade in all kind of securities and a lot of them deal in commodity futures. It happens more often than an individual broker offers advice to his customer to sell or buy a stock or take note of new developments taking place in the market dealings, but he is not holding a license of the investment adviser. Always work with the best discount broker in India to be in safe hands and shell out minimum fees.
Handling the Trade
A broker is needed to receive an order from the customer in order to sell or buy stock and utilize the brokerage network of his firm to pass it through towards a floor trader- meant in the market such as National Stock exchange or a dealer. As soon as the deal is done, the broker sends the information at once to the customer and undertakes arrangements for the transfer of certificates regarding stock and also other formalities of paperwork
Commission based role
Individual stockbrokers are paid commissions as per their turnover which may be separated as per the slabs by the franchise or SEBI as the case may be. These fees or commission vary depending on cases to cases basis. There are also some firms that are called as discount brokers as they charge brokerage in a single slot such as a fixed amount irrespective of the turnover or trades.
Test and Registration
It is SEBI- Securities Exchange Board of India and particular markets as National Stock Exchange or BSE that control the brokerage firms and also individual brokers. An individual broker must qualify the test conducted by the organization. When an applicant qualifies the test, he ought to complete his registration by means of a brokerage firm, in which some cases are needed to register with a securities commission pertaining to each state wherein he carries out a trade.
Requirements
In case of individual brokers requirements of brokerage firm differ, but a number of them need a person to have done training on the job prior taking a test. Usually, an applicant is required having an experience of four months in any brokerage firm ahead of taking the exam. In some brokerage firms, there is a requirement of experience of two years to work as a registered broker.
