The professional involved in the trading of stocks and other securities on behalf of his clients against the commission received is known as a stock broker. They are important component in the securities trading market as they help to bring together both the parties i.e. buyers and sellers and play a great role in the smooth functioning of trade. There are different licensing requirements to be fulfilled by the brokers which vary as per the geographical location. Financial expertise and awareness of the market conditions are the key qualities the broker should possess. Indian brokers have to get registration by Financial Industry Regulatory Authority (FINRA). Brokers are classified into two categories:
- Full service brokers:
They offer umbrella of services to its clients including research, advice, tax tips, financial planning etc. the commission rates are higher as compared to the discount stock brokers.
- Discount stock broker:
By charging reduced commission than full service broker, they offer limited services and do not provide any additional investment advice.
Due to its operation online, there is a lower overhead.
Today 100’s of brokers are listed under the stock exchange. The concern is to find the best share broker in India.
ZERODHA BROKING LTD. With 979241 active clients tops the charts in the securities trading market. It is a Bangalore based flat free share broker that was incorporated in 2010. It holds physical presence in cities like Chennai, Hyderabad, Pune, Salem, Cochin, Coimbatore, Ahmedabad, and Kanyakumari. It holds membership of NSE, BSE, MCX and MCX-SX.
The brokerage rate is 0.01% or rupees 20 per executive order; whichever is lower, irrespective of the number or price of the shares. It is amongst the cheapest and the most technologically advanced stock broker in India for all kinds of prospective investors. It contributes a portion of 10% of retail trading of securities in the market at daily basis. In March 2019, it became the self- clearing broker for the customers without involving any clearing charges. All the trading applications are offered to the consumers for free of cost. The overall brokerage structure is very simple and thus easy to understand by the clients lacking financial expertise.
Trading platforms:
- Kite 3.0 :
It is a web based HTML 5 lightweight and fast trading platform. It offers the facilities of market watch, extensive charting, advanced order placements etc.
- Kite Android/IOS :
It is a smartphone application easing the trading and monitoring process for the customers. The feature of live streaming data from BSE, NSE and MCX makes Kite the most advanced trading app in India.
- Zerodha sentinel :
It is a cloud based app allowing the consumers to set up price alerts on stocks. These alerts can be triggered even when the computer is off distinguishing it from other apps.
- Console :
It is the back-office platforms where various reports, account statements, contract notes are saved in a dashboard. It also offers tradebook and heatmap analytics tools.
- Coin :
It is the platform dealing with mutual fund investments. It provides commission free direct MF investment.
- Call & trade :
This service is available for the clients who are not online.
