There are many types of brokers in the market. A share trading franchise broker and stock broking franchises India is a type of financial intermediary. One shares in the risks and rewards, as well as liability for debts, by providing guarantees to investors who buy securities from them. In other words, what it buys and sells is not its own money but someone else’s money! The share trader invests or trades on their own accord. In this article we will dwell deep into the aspects which will differentiate between these two brokers.
- Goal of a Broker
Brokers buy and sell securities. Usually they are licensed. They are different from stock brokers as they interact with clients to provide solutions to their needs and help them in taking financial decisions on their behalf. They know what is needed in the market, what customers need from the market and the customers’ interests, thus helping them make decisions on investments.
- Nature of Customers:
Stock brokers deal with customers who require a service, interest in a transaction or need for advice. They are mostly related to securities broking business. Moreover, profit is the main motive of share trading brokers. Shares trading brokers take the risks and rewards themselves, as well as their liability for debts in the transactions they make on behalf of clients.
- Purpose of Trading Shares
Sometimes it is possible to directly sell shares through share trading brokers as well as through stock broker franchise India review websites. However most times you have to start your stock brokerage business by giving shares which you have in an investment account directly to the broker. Stock trading brokers are active in dealings on the stock exchange.
stock broking franchise india
- Financial Instruments:
Financial instruments are securities such as stocks, bonds, options, futures and commodities. Brokers provide advice to investors and clients on what financial instrument they should be interested in and buy into stocks, bonds etc. Therefore, if a person wants to start a stock broking franchise India business then he/she should have good knowledge of different types of securities available in the market like golds, coins etc.
- Exchange
There are regular exchanges in almost all the countries for the trading of securities, but some securities may not be traded at all times on all exchanges.Since share trading is related to exchange of securities, one can find a share trading broker through online stock broking franchise india. Stock exchange where shares are traded is also more regulated as compared to other type of brokers. For example NSE and BSE in India handle a lot of shares at present.
- Types of Securities
There are different types of securities which are bought and sold in the market. There is a mutual fund which can be invested into, and the profits can be reinvested into it till your investment is multiplied by the number of time you invest, this is called the “bond concept”. Mutual funds provide you with long-term capital gains which can result in you gaining a lot of returns from your money as compared to other types of share trading brokers such as stock broking franchise India.
Conclusion
Share trading is considered to be a lower risk brokerage business compared to stockbroking franchise India. When you purchase any shares for investment, you don’t deal with your own money, but with someone else’s. If you’re thinking of becoming a broker, then you must have a lot of knowledge about the types of securities available in the market etc. Before going ahead and starting investing directly into the shares, you should consider factors like chances of direct tax deduction on shares etc. So before starting any kind of share trading or stock broking franchise India business it is important to consider all these factors.
