Topic: Types of stock brokers
To buy and sell the stock you have to open Demat and trading account. demat account where you can keep your purchased share and trading account used to buy or sell the stock. without a Demat and trading account, you won’t be able to invest in the share market.
Mainly you can open Demat and trading account with a stock broker. they will give you the facility to buy and sell the stock. just go to the stockbroker they will open your Demat and trading account. both account are not separate from each other. both are in one system.
The stockbroker will give you your account ID and Password. so that you can access your account. in one account both Demat and trading account available which is connected to each other so that you can access demat and trading account in one account ID, password.
Types of Stock Brokers
Mainly 3 types of stock brokers available,
- Full Service Broker.
- Discount Broker.
- Bank.
1. Full-Service Broker
Full service broker provide you demat account.
Its will provide you some extra features like
- Stock Recommendation.
- Research Report.
- Free call and trade facility ( mostly free in the full-service broker).
- Offline branches’ availability in your area is High.
- The recommended executive will help you to solve your problems.
Some cons
- Brokerage Charge is higher than the discount broker.
- Maintenance charges are higher.
2. Discount Broker
Discount broker is formed from a few years back. It provides you Demat and trading account with the cheapest costing. brokerage fees are also less. that why people are opening an account with a discount broker rather than a full-service broker.
Lets see some features:
- Brokerage charges are cheaper compared to full service and banks.
- Low Maintenance cost.
Some cons:
- You will not get any research reports from brokers.
- The stock recommendation is not available.
- Free call and trade facility also available but you have to pay some charges for that.
- Offline branches are not available.
- recommended helping the executive will not available.
My Thought on the discount broker: I think a discount broker is good because you can get stock recommendations from anywhere but if you want to be an independent trader. then you have to research stocks independently for a better future in the stock market.
Also, you will save lots of extra money using discount broker.
3. Banks Brokerage service
Banks also provided demat and trading account facilities. if you open demat & trading account with banks then you have to open saving account also.
banks open 3 Account
- Saving
- Demat
- Trading
You have to open an extra savings account. but if you already have a saving account then only Demat and the trading account will be open from the same bank where your savings account is opened.
My thought on baking brokers: banking brokers taking much higher brokerage charges than others. that why I think this is not useful to pay lots of money as brokerage charges.
Conclusion
All the Types of Stock Brokers are available, also I have shared my thought on the broker so that you can choose the best type of broker for you.
All three brokers are good in there own way, but I will recommend opening an account with a discount broker.
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*Read Related Post For more Information.