Broker
A stock broker is a SEBI-registered intermediary that sends your buy and sell orders to the exchange and charges a fee for it. The broker carries out the decision you have already made; it does not make that decision for you.
What a broker does
You cannot trade on the NSE or BSE directly. A broker that is a member of the exchange receives your order through an app or website, checks that you have the money or margin for it, and passes it to the exchange. It also reports your trades back to you and handles the money side of settlement.
What a broker does not hold
Your shares are not kept with the broker. They sit in your demat account with a depository, NSDL or CDSL, in your name. That is why they remain yours if you change brokers.
Full-service and discount brokers
Full-service brokers charge higher fees and also offer research, advice and a person to speak to. Discount brokers charge low or flat fees and give you tools to place orders yourself. Neither type can guarantee a profit, and the fee is the same whether a trade makes money or loses it.
What to check before choosing one
Confirm that the broker is registered with SEBI and appears on the exchange's list of members. Compare the charges, including brokerage, account fees and taxes, the quality of the app and how complaints are handled. Be careful with anyone who promises guaranteed returns or secret tips.
From decision to demat
You decide to buy 10 shares. You open your broker's app and enter the order, and the broker sends it to the exchange. The exchange matches it and the broker shows a confirmation. The brokerage fee is charged for that service, and the shares appear in your demat account.
Common questions
- What does a broker do?
- A broker sends your buy and sell orders to the exchange, handles the settlement money and reports your trades, in return for a fee.
- What is brokerage?
- The fee a broker charges for carrying out your orders, usually a flat amount per order or a small percentage of the trade value.
- Is Maetis a broker?
- No. Maetis is education only. It does not execute trades, hold your money or give investment advice.
- Do I need a broker to invest?
- To buy and sell shares on an exchange, yes: a SEBI-registered broker. Some other investments, such as mutual funds, can be bought through other routes.