Stock broking is a service that can be online or offline. Basically, it gives power to the retail and institutional investors to buy and sell equities.
Stockbrokers will trade shares both on-exchange and over-the-counter, It will depend on where they can find the best price and liquidity for more benefits. They have strict rules for trading and investing money in the stock market. Because of this reason people buy their share with the help of Stockbrokers.
A stock broking company will charge a commission on the trades of the stocks. This commission will depend on a client’s behalf or a fee for retaining its services.
There are some services which are provided by a Stockbroker:
- Stockbrokers will complete your orders on your behalf
- They do not give any advice regarding the trading and stockbroking
- Advisory stockbrokers will offer advice on where to trade and how much will you get in return
- They do not put any input from their side
- Discretionary stockbrokers will trade on your behalf
- They will execute trades without your input
Why Paytm and other startups are turning towards it?
In India, Stock broking is a great opportunity for investing money in a good place.
India has a well-established stock market. It is the plus point for Indians because India has more than 50 crore smartphone users. Our country has approx 1.2 crore active traders which are trading through their smartphones.
It not only helps them create more use cases on the app but also opens up new revenue opportunities, increases customer stickiness. The impact of stock trading is big on the youth of India. It is very easy for them to trade through online platforms.
They also said that these platforms have a superb user interface and user-friendly experience and it will also attract the new traders.
Paytm can definitely increase the outlook for the stockbroking market and bring it in new traders, said Nithin Kamath, chief executive officer, Zerodha. It has a big user platform which makes a clear choice for the trader to trade quickly.