A stockbroker is referred to as an individual or organization that is specifically provided with the license for participating in the securities market on behalf of customers. The stockbroker plays the role of an agent. Whenever the Stockbroker works as an agent for the sellers and purchasers of securities, a fee is charged for the particular service.
The job of a stockbroker is to handlethe financial portfolio of the client, monitor the investments of the client, and so on.
Being an agent, a stockbroker only performs a service for the investor. It signifies that the broker is going to purchase for the buyer and sell for the seller by every time ensuring that the best price is received for the customer.
An investor needs to consider the stockbroker as a person, who gives important information and service to help in making the appropriate decision regarding investment. They are sufficiently qualified to endow answers to an array of questions that investor might be in the requirement of answers to and to help in the participation in the regional market.
How can you know whether a broker is registered or not?
Every broker shows registration details on their specific website as well as on each and every official document. You can properly confirm the details of registration on SEBI website. The SEBI website gives the details of every registered broker. The registration number of a broker initiates with the letters “INB” and for a sub-broker, it is “INS”.
Which Documents need to be signed with stockbroker?
Prior to the initialization of trading with a stockbroker, you need to furnish some of your important details including name, address, addressproof, and so on and accomplish a broker-client agreement. You are also qualified to a document, known as ‘Risk Disclosure Document’ that will provide you with a clear idea about the risks involved with the securities market. It is very important to go through all such documents very carefully.
Every Sub-broker needs to acquire a Certificate of Registration from Securities and Exchange Board of India and without it,Sub-broker is not allowed to trade in securities. As per the instruction of SEBI, no broker will deal with an individual, who is playing a role of a sub-broker, unlessthat person is registered with SEBI. It will be the responsibility involved with the member-broker for ensuring that his clients are not playing the role in the capacity of a sub-broker unless they have done the registration with SEBI as a sub-broker.
Various broking houses are present all over India and many of these broking houses hold International presence as well.
Investors need to examine the terms and conditions of the broker and make a decision about opening a trading account.
You can have various questions in your mind regarding this topic, you can resolve your queries by searching various reliable websites. If you want to know about the Best stock broker, then consult an expert in this field. You need to know all the important information regarding this concept if you are interested in it.