What is a Broker?
You cannot walk into a stock exchange and buy shares directly. A broker is the registered middleman who places orders on your behalf. Here is what you need to know before choosing one.
Key takeaways
What does a broker do?
A broker is a registered intermediary who executes your buy and sell orders on the stock exchange on your behalf. You cannot directly walk into NSE or BSE and trade — you need a broker in between. Think of a broker like a ticket agent. You want to travel somewhere — the agent books the ticket for you. You want to buy shares — the broker places the order for you on the exchange.
Full-service brokers
Full-service brokers offer not just trading but also research reports, investment advice, relationship managers, and financial planning. Examples include HDFC Securities, ICICI Direct, and Kotak Securities. They typically charge higher fees. They are useful if you want guidance and hand-holding as a new investor.
Discount brokers
Discount brokers offer only the trading platform — no advice, no relationship manager. They charge flat, low fees per trade. Examples include Zerodha, Groww, Angel One, and Upstox. These are very popular with self-directed investors who do their own research. Zerodha, for example, charges ₹20 or 0.03% per trade for intraday trades, and zero brokerage for delivery-based stock purchases.
What should you look for when choosing a broker?
Look for low fees, a clean and easy-to-use app, good customer support, and SEBI registration. Always verify that your broker is registered with SEBI — the Securities and Exchange Board of India — before opening an account. You can check broker registrations on the SEBI website. For most beginners in India, Zerodha or Groww are the most popular starting points because of their simple interfaces and low cost.