A stock broker is a middleman between the exchanges and investors.
Broker provides the flexibility in deals of investors with exchanges.
Below are some entry questions over brokers:-
Is it not possible to deal in stock markets, without a broker?
It’s possible, but risky. Unless a broker you need a registration certificate from SEBI. Suitable bank deals are essential for cash deals with exchange. We need to trade under complicated stock exchanges trading platform, which cannot ascertain too many options as your brokerage. Or create a suitable platform with own servers, technologies.
Why to face all these risks? Its better to pay a small brokerage fee and enjoy easy trading.
Is my money safe on transactions with broker?
Mis-use of money by brokers, recorded cases is very few on this aspect. Check your brokers SEBI registration certificate it’s your ‘money safety certificate’.
Many brokerages are limiting transactions between trading account and bank account only. So there are no chances to mis-use your trading account.
Now brokerage charges, facilities offered are the ensuring factors effecting selection of brokers, as safety is not an issue. Many brokerages are now trusted corporate firms.
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