\nA broker or Brokerage firm is an important financial intermediary in financial markets. Brokerage firms act as the vital link between clients and the Stock Exchanges. A brokerage firm buys or sells financial products for or on behalf of the customers. It charges a flat fee or commission for its services which can be a percentage of trades or transactions performed on behalf of the clients. From a customer\u2019s point of view, the brokerage firm with minimum fee \/ commision will be beneficial. Customers must check the credentials of a broker before signing up.<\/p>\n
Some functions of a Broker or Brokerage Firm are :
\na. Managing documentation and paperwork for accounts and investments
\nb. Facilitating transactions or trades for clients
\nc. Acting as a bridge between the Stock Exchange and customer<\/p>\n
Brokerage firms are categorized as per the services they provide and also per regulations under SEBI :
\n1. Full-service broker is a licensed broker\/dealer providing a variety of services to its clients like research, advice, retirement planning, portfolio construction and analysis, estate planning, tax advice etc. They charge a high commission for these services.
\n2. Discount Broker – this is an online service provider with a basic transactional platform but no advisory or research. The fees charged is very low
\n3. Authorized Persons – they are more of a broker\u2019s franchisee. They source business on behalf of a broker and pass it on to the firm. They thus represent the Brokerage Firm.
\n4. Robo Advisor – These are online advisories which provide client based, specific and customized portfolio services as per client\u2019s profile and goals.<\/p>\n
A broker or Brokerage firm is an important financial intermediary in financial markets. Brokerage firms act as the vital link between clients and the Stock Exchanges. A brokerage firm buys or sells financial products for or on behalf of the customers. It charges a flat fee or commission for its services which can be a […]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3853","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3853"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3853\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}