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How Full Service Brokers Facilitate Stock Trading?

by Pooja Shetty Financial Advisor

Consider a situation where you want to buy shares of a company listed on the stock exchange. Traditionally, traders used to shout trades on the floor, which was not an organized way to work. Brokerage companies came into existence to overcome the inefficient way of executing trades on the stock exchange floors. Over a period of time, these companies offered several other services making it easier for investors to trade on the stock markets.

If you want to invest in the stock exchange, you will need the services of a broker who facilitates buying and selling of shares. Several financial institutions facilitate trading on the stock exchange and invest in other securities between buyers and sellers.

Full-service brokers are also called as advisory brokers. In addition to facilitating securities trading, they provide several other services as well. Following are the five services offered by full-service brokerage firms.

1.    Reports

Stock broking service providers often hire a team of professional experts who study and analyze the markets. In addition, they track the different companies listed on the various stock exchanges. Based on their knowledge and analysis, they offer reports to help you make investment decisions. Some of the reports available include company-related, industry-specific, and macroeconomic studies.

2.    Stock tips

Hundreds of companies are listed on the numerous stock exchanges. Making the right investment decisions to maximize your returns is tough. Stock brokers regularly study various companies and the industries. This enables such service providers to provide you with stock tips that help you earn good returns on your investments.

3.    Market research

Stock market investing is complex and requires in-depth knowledge and experience. Most broking companies have an experienced team that conducts detailed research about the market and listed companies. When you opt to avail services from such brokers, you will have access to this research. It will help you make an informed investment decision and reduce your financial risk while earning good returns.

4.    Trading software

Broking firms offer user-friendly trading software to help you to execute trades on the stock markets. These programs are easy to use and efficient. In addition to providing you with a trading platform, these software programs offer several other services. You are able to check your position, track your portfolio and its performance, transfer funds, and do much more through the trading software.

5.    Charts

Professional experts conduct technical and fundamental research to track the market and stocks’ performances. They provide different types of charts, such as lines, graphs, and candlesticks. You may use these charts to make investment decisions. The broking firms also provide intraday charts, historical low and high prices, and many other analyses to help you maximize your returns through stock market investing.

Other services offered by broking firms

1.    In addition to facilitating investing in shares, broking firms offer several other services. You may invest in other securities, such as mutual funds, currency derivatives, Initial Public Offerings (IPOs).

2.    Furthermore, several stock brokers in India offer portfolio management services (PMS). This will help you track all your investments in different types of securities and financial products in a single location. Moreover, experienced professionals will analyze your current financial situation and understand your future goals to make recommendations. This will help you achieve financial security and earn higher returns through investing.

3.    Several broking companies also provide Depository Participants (DP) services. These firms participate with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). This allows you to not only execute trades but also settle these through such depository services.

4.    Reliable and reputed broking companies provide real-time market updates and information. Having quick access to the important market decisions is crucial as it enables you to make the right decisions.

5.    In addition to investing in the Indian stock markets, you have access to international markets through broking companies. This allows you to take advantage of the positive movements in the global markets.

Brokerage charges

All the aforementioned services are available at a cost. The fees paid to the broking firms are referred to as brokerage charges. These charges are primarily levied to compensate the brokers when they facilitate trades between buyers and sellers. Generally, brokerage fees are levied as a percentage of the total transaction value, a flat fee, or a combination thereof.

You will pay the brokerage fee when you buy or sell shares through your trading account. In addition to the basic fees, broking firms may levy other fees for maintaining a Demat account and annual maintenance charges.

The brokerage fees vary from one service provider to another. Furthermore, broking companies may levy different fees for delivery trades and intra-day trades. It is important that you check the various applicable fees and charges while choosing the broking company. Checking the terms and conditions and fees levied by different broking firms online before making a decision is recommended.

By appointing a full service broker for your trading transactions, you ensure that you get superior knowledge of the stock market which will translate into higher returns for your investment. So choose a reliable brokerage company and start stock trading today.


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About Pooja Shetty Junior   Financial Advisor

1 connections, 0 recommendations, 14 honor points.
Joined APSense since, November 14th, 2017, From Mumbai, India.

Created on Jan 2nd 2018 03:36. Viewed 586 times.

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