The equity market is a popular means to diversify one's investments. And some research in this area can convince one to start investing. However, equity shares cannot be bought directly unless a company makes a public offering.Many companies offer their stocks for sale only through a brokerage system. Often, a company's brokerage sells its stock to other small brokers who in turn sell it to the public through a trading account.This is just one of the many roles of a stock broker who could be an individual or a representative of such a specialist company.
More popularly, an individual investor can directly invest in stocks but this is through a brokerage that may not involve a physical person and can be fully automated.
What are some of the important ways a stock broker can help meUsually, a stock broker manages an online trading account in your name with little or no brokerage and can provide assistance in a number of ways.
(i) They offer the expertise to advice on the stock recommendations for a person, for what term to invest and help plan their portfolio. Especially for someone who is unsure of how to invest in share market but wants to explore, such assistance could be worth every penny.
(ii) They are well informed of the stock prices, changes in the market and generally up to date with all the critical information in the online share market. They are persons to go-to for any unbiased crucial investment decision.
(iii) They have access totechnological advancements to ensure effective returns in the short term throughintraday trading which requires constant watch over the equity market and square off one's share dealings between the opening and closing of the market in any one day.
(iv) They have the power to represent a client by prior consent. Since many investors are not involved full- time in share market dealings, the stock broker can buy or sell shares on their client's request even with zero brokerage.
You may have sufficient money but not the expertise in share trading to put it in the right places and for the right time. So, these brokers or "financial advisors" as they are sometimes called no doubt works as facilitators of sorts in such trading. You can find one with the lowest brokerage to take care of your money.
In a volatile stock exchange like the stock market India, such an experienced guide can prove to be invaluable to steer clear of huge losses and maximize returns on investment.
Alice Blue Online's stock brokerage compares itself against it competition frequently and charges the lowest brokerage in the market.