The Origin of Stockbroking

When people acquire money, there is usually one thing they think of, how to spend it. A better and more proficient option would be to invest that money instead and reap its dividends. There are many ways to achieve this, either by investing in real estate, investing in mutual funds, and by investing in stock markets. Investing in stock markets, however, seems to be the most viable option. But the common man seems to be very misinformed and very un-trustworthy about stock markets and investing in them.

To ease with the transition into stock markets many public and private firms exist, these businesses called ‘brokers’ help new potential investors and clients make wise decisions regarding where and what to invest in. The people who work in brokers are called ‘stockbrokers,’ and this has been a profession that has existed since ancient times, the first recorded instance was in Rome where buying and selling of shares were being done as early as 2nd BCE.  In India, most stockbrokers are qualified people with a fair share of knowledge on stockbroking and investing.

The most commonly asked question is what is a stock or a share? A stock or share is a representation of part ownership of a business. Stocks can be one of two, they can be either securities listed on a public stock exchange and can be bought by anyone, or they can be a privately traded stock only. Stockbrokers simply help an investor make decisions to either buy or sell certain shares at specified prices. But their job is not so simple; most brokers need to have a bachelor’s degree in finance or business administration in order to understand the financial laws and regulations, investing and managing and accounting. This skill set gears them to precisely analyse the market situation and provides a knowledgeable insight for their investors and clients to invest on.

A particular type of firm, commonly called discount brokers exists. These companies do not provide the full services of a stockbroker, but instead, they keep their rates and fees fixed to help new investors with lesser capital invest with them. But with such a lucrative offer comes one drawback, they will offer little to no investment advice after the first one. Discount brokerage in India is gaining rapid popularity. Since the per capita income is lesser than most developed countries, the common man goes to discount brokers if they deem investing in stock markets is the right choice. Apart from the low rates and low brokerage charges, there are several other elements to discount brokers that are very advantageous. Services like mobile applications, excellent customer service, higher leverage and good intraday exposure, and reliable online trading platforms.

Investing in stock markets is the right choice. And using firms like discount brokers is the way to go, their experience and lower margins are always helpful for clients and new investors looking to step into investing. Their value for money factor only further helps boost their portfolio and adding more investors in the process.