Brokerage Essay

Brokerage refers to the financial institution which facilitates the buying and selling of financial securities between the buyer and the seller. The clients of brokerage firms include the investors who trade the public stocks and other securities through the firm’s agent stockbrokers.

Brokerage firms are the business entities that deal with stock trading. India has an increasing capital market and a growing number of investors and many brokerage firms. In Indian retail brokerage industry, the brokerage firms primarily work as agents for buying and selling of securities like shares, stocks and other financial instruments and earn commission for each of the transactions.

Stockbrokers are those professionals who trade securities and also charge

They charge lower fees than full service brokers. The traditional brokerage firms offer investment advice and trade securities on behalf of clients. They offer a wide variety of services that include planning tips, estate and retirement planning, research and many more. Traditional brokerage firms are a good choice for novice investors and those who don’t have experience in dealing with complicated issues.

The stock will assess the client’s financial situation and chooses investment products and a strategy. The first step will be to determine the long- and short-term goals of the client, whether it is debt repayment, starting a new business, or expanding business operations. Some people transfer wealth to minors and dependents while others seek to establish a legacy. People invest to create a retirement plan and save for their children’s tuition, house, or major purchases.

Stockbrokers develop investment strategies based on financial goals and risk tolerance. They specialize in foreign securities, annuities, unit investment trusts, and initial public offerings. They also trade exchange-traded funds, mutual funds, bonds, and

The foreign exchange market is high risk and sees more than $5 trillion dollars traded daily. Traders have to go to an intermediary such as a foreign exchange broker to exchange trades. The foreign exchange brokers make money on commissions and fees.

A foreign-exchange broker takes orders to buy or sell currencies and executes them. These brokers typically operate on the over-the-counter, or OTC, market. This is a market that is not subject to the same regulations as other financial exchanges, and the broker may not be subject to many of the rules that govern securities transactions. In return for executing buy or sell orders, the foreign exchange broker will charge a commission per trade or a spread. That is how these brokers make their money.

TOP BROKERAGE FIRMS IN INDIA

1) Sharekhan Limited

2) Angel Broking Limited

3) Reliance Money

4) Kotak Securities Limited

5) India Infoline