A stockbroker is someone who performs a vital function in the stock market. They are the ones executing transactions such as buying and selling of stocks on behalf of the investors.
So, knowing and choosing the right stockbroker is essential for any investor.
It may appear like an overwhelming decision to make but this blog will shine some light on the matter.

Types of Stockbrokers

Investors have three types of stockbrokers they can choose from based on their needs:

Full-Service Brokers

A full-service broker offers clients an extensive range of services related to trading in stocks or shares. They research different stocks in the market which the client is interested in investing in. Then, they present their recommendations on potential stocks that can give them profits.
Full-service brokers cater to investors with different interests by providing customised support through tailored brokerage services and plans. Clients who invest in large and multiple stocks can also ask stockbrokers to handle their portfolios.
Customer service staff can also meet clients as full-service brokers have offices in major cities.
Full-service brokers study trends, investigate different market patterns and keep themselves updated on the progress taking place in the stock market.
Apart from this, they offer recommendations on which stock the client can invest in and gain profit from. They offer advice and use their expertise in selling and buying different stocks and shares.
Although Full-service brokers offer financial advice and educational materials, and tailor recommendations according to your brokerage plan, they must tell you if there are any risks present with your choice of stocks.
Full-service brokers typically have in-house teams to conduct and compile research on the market regularly, which gives you an added advantage.
A full-service broker takes care of most of the work for their clients, making their commission or brokerage fee high.

Discount Brokers

Unlike full-service brokers who provide an entire package of services related to trading, discount brokers only focus on the basics. They only conduct orders of buying and selling for their clients but do not offer any additional services. That is why they also charge a much lower commission.
In some scenarios, the charge can be as low as Rs.10 per transaction.
So, how are they able to give "discounted" charges?
You may wonder how discount brokers can offer discounted charges. As they provide only transactional services, they will not have many physical set-ups and also majorly operate through online platforms. This makes their operational costs low.
That is why they might be perfect for you if you are a seasoned investor looking to save on costs. But consider this: you will not have advisory, research or customised services. If you are new to stock market investments, discount brokers might not be the right choice for you.

Robo-advisers

As the name suggests, Robo-advisers are automated digital platforms providing financial planning services online. With the help of algorithms and minimal human supervision, they formulate financial advice.
The client fills out an online survey to lay out their financial situation and goals. This data is used by the robo-advisors to offer investment advice.
Compared to discount brokers, robo-advisors are inclined to be cheaper. Many of them charge a fee of 0.2% to 0.5% out of the client's total account balance. Even the opening balances are low.
Through the convenience of the internet, you can reach robo-advisors anytime. You just need an internet-connected device and start your transactions in a few clicks.
Keep in mind that your investment options may be limited because robo-advisors mostly deal in mutual funds.

Conclusion

Each stockbroker has different types of services to offer their clients. Now that you are aware of the types of brokers available and you know their functions, you can choose the best share broker in India.
Goodwill Wealth Management offers a wide range of services and features, along with the lowest brokerage for trading in India. Open a Demat Account in just 10 minutes and start trading!