Who are Brokers in Share Market?

Who are Brokers in Share Market? Generally, a broker means a middleman who buys and sells on the behalf of others and he gets the commission for the same. The broker is a middleman between the two parties to get the deal final. after the deal is made, he is entitled to commission.

This same happens in the share market. In a share market, a broker can be a firm or an individual who generally 'buy' and 'sell' on the behalf of the trader or investor. For this, they get the brokerage for buy and sell.

Besides this, some brokers also provide many more services like equity research, investment plans, providing margins, and many other services.

Brokers in Stock Market

In the initial stage of the Share Market, the investors having a big amount of money could afford the brokers to take the exposure, but in recent years the whole process is turned online, the number of investors and traders has increased with heavy numbers and this has changed the whole scenario. As there are now discount brokers available, there are many people taking interest in the stock market as their charges are minimal compared to the full-service broker. There are two types of brokers in India-

1. Full-service Broker

2. Discount Broker

Read What is Share Market?

Discount Broker in Share Market

• The discount broker provides very cheap and low-cost brokerage for trading and investing. their charges are very minimal as compare to the full-service brokers. The reason may be they have low operation costs. 
• Apart from low-cost brokerage, they also provide free online web-based trading software to their clients.
• The charges of these discount brokers are around 50-60% less as compare to full-service brokers.
• The most popular discount broker in India are:-

1. Zerodha
2. Upstox
3. 5paisa
4. Samco
5. Fyers

What is a Trading Account and how to open a Trading Account?

Full-service Broker in Share Market

• Apart from providing a trading terminal, they also provide many more services like equity research, advisory services in commodities, Forex, IPO's, Mutual Funds, Tax tips, and many more.
• They have more branches in the country than discount brokers. A customer can visit their branches if they have a query.
• The charges are higher as compare to the discount brokers.
• Some of the brokers provide their own bank account and Demat account.
• List of best Full-service brokers are 

1. Angel Broking
2. ICICI Direct
3. HDFC Securities
4. Kotak Securities
5. Sharekhan

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Earnings of the Stockbrokers in Share Market

The main source of their income is by charging a fee as a brokerage for every executed order on their platform. There are many more things are there like, the Annual Maintenance Charge(AMC). Many brokers did not charge for the delivery trades, which means holding the shares for a longer period of time, but they charge for the intraday buy and sell of Equity shares, Futures, and Options. Some brokers charge 20 or 30 rupees or less per executed trade.

Few brokers provide additional services to their clients for which they charge for the services like stock recommendations, stock market courses, and many other services.