To buy and sell securities in India, you can rely on stock exchanges. Exchanges like NSE and BSE allow traders to buy and sell securities like stocks, derivatives, bonds, and currencies. You can visit the stock exchanges in person and indulge in offline trading. However, it isn’t always feasible to visit stock exchanges physically. For the same rationale, investors indulge in online trading and enjoy several perks. Traders require stockbrokers to gain access to stock exchanges via investment platforms. Stockbrokers also extend several offerings that allow investors to buy and hold securities. Let us discuss the role of trading brokers in India in detail.
What Exactly is a Stockbroker in India?
Stockbrokers are licensed organisations in India that facilitate the trading of different securities. They act as intermediaries for traders to gain access to securities listed on stock exchanges. They also offer uninterrupted access to securities listed in other financial markets. Investors can trade stocks, bonds, ETFs, and other instruments with the help of a broker. Stockbrokers are registered with SEBI (Securities and Exchange Board of India) to offer trading services. A stockbroker offers several resources essential for trading for India. For instance, stockbrokers in India allow you to open a new trading account. You cannot buy and sell securities seamlessly without a trading account in India.
Stockbrokers are also Demat accounts providers. They help investors apply for new Demat accounts and hold securities in electronic format. Some might consider brokers and depository participants similar. However, there is a difference between brokers and depository participants. Both can offer Demat accounts to investors, but only a broker can offer a trading account. Since both Demat and trading accounts are essential for investors, brokers are preferred. Not to forget, a broker also offers investment platforms for investors to make informed decisions. Brokers usually have a team of analysts and researchers to help investors make better decisions. They do so by offering research facilities on their trading platform.
Things to Consider Before Selecting a Broker in India
Now that you have understood the role of a broker, you must choose one to begin your trading journey. Here are the factors to consider before selecting a broker in India for your trading journey:
- Account Expenses: Brokers charge investors for offering Demat and trading accounts. For instance, they charge maintenance fees from Demat account users. It is better to select a broker that applies minimal account expenses to investors. Religare can help you open the best Demat account for free.
- Research Facilities: Check for research facilities on the trading platform before choosing a broker.
- Interface: The interface of the Demat account and trading platform must be intuitive. It helps novices who have just started their investment journeys.
- Trading Education: New investors might not know the trading types and research techniques. For instance, one might not know what is swing trading or scalping. The broker must offer educational resources on their trading platform to help novices.
- Margin Trading: Many brokers offer additional funds to investors to make larger trades. Margin trading increases the investment capital for traders.
In a Nutshell
A broker helps start your trading journey in India. Religare Broking is a reputed broker that can help you acquire trading and Demat accounts. Don’t forget to compare account expenses before choosing a broker in India. Select your broker and start investing now!
