Broker Definition | What Does Broker Mean?

The role of a Broker is most important in the stock market because the investor cannot invest directly in the stock market. Instead, the investor can only buy and sell shares in the stock market through the Broker. For buying and selling shares, brokers charge some percentage from their clients, which earns them. In this blog, we will discuss what a Stock Broker and the Best Stock Broker in India.

What is Stock Broker?

A broker is a person or entity who buys and sells things on behalf of others. Brokers are the middlemen between two parties. In stock market parlance, a broker is a person or a firm that executes 'buy' and 'sell' orders for an investor for a commission. Some stock brokers also provide additional research, intelligence, investment plans, margin funding, and other value-added services, apart from executive client orders.

Stock Brokers know their market best, and they have expertise not only in trading processes but also in market behavior. They know what to do, whom to talk to, and most importantly, how to do it well.

As you may know, we cannot buy shares directly by going to the stock market. Instead, we need an individual, firm, or intermediate to buy shares from the stock market. Those who are these individuals, firms, or intermediaries through whom we can trade in the stock market are called stockbrokers.

A Stock broker can also be an entity or a registered person with the stock exchange. When we place a shared order, these brokers forward our order to the Bombay Stock Exchange (BSE) or the National Stock Exchange, and Brokers charge us some fee which is called brokerage.


Brokers are entities or individuals who earn money by charging a fee or commission from their clients for every order they execute. In contrast to previous, many trades are now executed via electronic systems without any human interference. Although, various investors still prefer using a physical stockbroker for the professional insight that comes with it. For Buying and Selling in the stock market, the Brokers charge some brokerage fees. The brokerage of every Stockbroker is different.


Qualification of Stock Broker

The qualifications to become a stockbroker are given below 

  • Must have at least two years of experience in a stockbroking firm.
  • A sub-broker (before becoming a broker) needs to be 12th pass to get the job.
  • The minimum age should be 21 years.
  • The minimum educational qualification required to become a stockbroker is graduation.
  • To become a professional stockbroker, knowledge of commerce, business, business administration, or economics is preferred.

Function performed by Stock Brokers.

Below mentioned are the functions performed by a Broker-

  • Order execution: Brokers perform their clients' trading orders online. For the same, the Broker charges a specific commission. Order execution may be a flat fee per transaction or a certain percentage of the transaction value.
  • Advisory on Financial Matters: Both new and experienced investors depend on stock guidance from their Stockbroker. But stockbrokers must disclose all the details while suggesting a stock that includes being transparent about the risks.
  • Trading platforms: Nowadays, having various secure platforms through which clients can place orders. Mainly, Big brokers provide trading applications and software for smartphones, laptops, and tablets.
  • Margin financing: Traders who have accounts with significant brokerage funds can use margin funding facilities. This essentially means borrowing funds from the broker to take more prominent positions in the market.

Services Offered by Stock Broker

Stock Brokers provide the following services to their clients :

  • Stock Brokers allow their clients to invest in the stock market and other securities.
  • Since the Broker has a good understanding of the market, they can give the right advice to the clients on when to buy and when to sell.
  • Stock Brokers sell and buy shares on behalf of their clients and handle all the paperwork.
  • Stockbrokers inform their clients about any new investment in the stock market.
  • To invest in the stock market, the necessary accounts like the Demat Account and trading account are opened and provide a platform for trading.
  • Stockbrokers answer the investment-related questions of their clients.

Types of Stock Broker

Below mentioned are the kind of Stock Broker.

1.Full-Service Stocks Broker

Full-Service Stocks Brokers are those brokers who provide their clients with tips on-

How to open a Demat account and Invest in the stock market, such as when to buy and sell shares, when to trade, facility to invest in IPO, etc.

The customer support of the full-service stock broker is excellent, and the full-service stock broker has branches in many cities. Intending to provide more convenience to its clients, the fees of full-service stockbrokers are also exceptionally high.

Below mentioned is the list of some popular Full-Service Stock Brokers in India-

  • ICICI Direct
  • HDFC Securities (HDFC Securities)
  • Share khan
  • Motilal Oswal
  • IIFL Securities
  • SBI Securities
  • Axis Securities

2.Discount Brokers

Discount brokers charge less money from their clients than full-service stockbrokers in the stock market. This is because discount brokers provide the investor/trader a platform to invest in the share market but do not give any tips on supporting the share market.

If you also want to open your Demat Account cheaply, a discount broker is the best option. Many Discount Brokers also open Demat Accounts absolutely with no cost. In addition, discount brokers provide their clients the facility to invest in IPO, Stocks, Mutual Funds, Digital Gold, etc.

Below- mentioned are the leading Discount brokers in India are as follows 

  • Upstox
  • Zerodha
  • Angelone
Apart from this, other stockbrokers and trading applications are working as Discount Stock Brokers.

Best Online Stock Broker Trading and Investing Platforms


Zerodha is India's No. 1 stockbroker. Zerodha is the largest and most demanded Broker offering a flat fee Discounting Brokerage service to invest in.

  • Equity,
  • Currency,
  • Commodity,
  • IPO and
  • Direct Mutual Funds.

The best part is that Zerodha charges Rs 0 brokerage for equity delivery trades and direct mutual funds. For intraday and F&O, it charges flat Rs 20 or 0.03% (lower) per trade. With Zerodha, the leading brokerage, you pay for any transaction is Rs 20 for an order. The order can be of any size, amount, or segment. 

Advantage of Zerodha

  • Most Popular Broker.
  • Self -clearing Broker.
  • Best trading Platforms and tools in the Industry.
  • Brokerage Free Equity Delivery trades.
  • Cheapest Share Broker.

Disadvantages of Zerodha

  • Non-availability of Monthly unlimited trading plans.
  • Non-availability of Lifetime Free Demat Account.
  • 3-in-1 trading account not available.


Upstox is founded to make financial investing effortless. It offers technologically leading products and tools that help users invest in stocks, mutual funds, and IPOs. It is one of India's most prominent investment platforms, trusted by over 50 lakh investors. This application will help you with your investment needs.

Advantages of Upstox

  • Easy and secure platform to invest in the stock market.
  • On stock investments, you will be charged Zero brokerage.
  • Access charts, financial data, and news related to every stock to make informed decisions.

Disadvantages of Upstox

  • Unavailability of Margin Funding on delivery trades.
  • It doesn't offer unlimited Monthly trading plans.
  • No availability of 3-in-1 accounts as the company doesn't provide banking services.
  • 24/7 customer service is not available.

Angel One

Angel One is one of India's largest full-service retail brokers, providing online discount brokerage services. In addition, Angel One offers a comprehensive range of investment and trading services. 

Advantages of Angel One

  • Flat fees Stockbroker charging Rs 20 per order across segments and exchanges.
  • Free research and advisory and trading software.
  • Presence in 100's cities across India.
  • Training and handholding are available for beginners.
  • Margin trading facility.

Disadvantages of Angel One

  • It doesn't offer a 3-in-1 Account.
  • Broker-assisted trades are charged extra Rs 20 per executed order.

How to open an Account Online in the Discount Broker Application?

Zerodha offers online paperless account opening platforms to all clients. An individual can open a 2-in-1 Account (Trading + Demat Account). Below mentioned are steps to open a Zerodha account:

  • Visit the respective Discount Broker Application
  • After visiting the app, click on the signup button available on the right-hand side of the top menu
  • Enter the mobile number
  • Enter the OTP received on the mobile phone
  • After entering the OTP, you must enter the requisite details, PAN, and bank account in the process.

How to choose a good stockbroker?

Before selecting a stockbroker, make sure what type of Stockbroker you need. If you do not know about the stock market, you can start investing in the stock market with a full-service stockbroker.

But if you do not want to spend much money on trading, you can open your Demat Account with a Discount stockbroker. But it is essential to keep in view that the Discount brokers do not give you tips related to the stock market.

Choose a stockbroker who is registered with SEBI and the stock exchange. Because if you go to a broker who is not registered with SEBI and the stock exchange, then fraud can also happen to you.

Before choosing a stockbroker, check all the fees of the Broker. It is also advisable to check that there are no hidden charges.

Keeping all these things in mind, you can choose a good stockbroker; all the broker names we have told you above are reliable stock brokers, and you can trade with any of them by opening your Demat Account.


After reading this article, you must have understood what is a stockbroker and how vital a stockbroker is in the stock market. Trading in the stock market without a broker would have been complicated. Brokers make it easy for the share investor to trade in the stock market.

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