The stock market has become a common medium for investment purposes and earning a certain return on the investment. Moreover, trading on a regular stock exchange has become a common phenomenon in which people sought to earn a certain rate of profits over and above the initial amount invested in stock and shares. Every individual has a sole motive for earning maximum returns by carefully selecting the best stock or security traded on the primary and secondary markets. Everybody around the world invests in one or other form of security.
Traders are the ones who trade on a regular basis and are indulged in the same business. With the dematerialization of securities and digitization of stock exchange, people have started looking for the best avenues which ensure the investor a reasonable percentage of returns. Brokers help traders with the investment process by providing them various services like assistance in the opening of Demat account and keeping a record of transactions etc. They charge a certain percentage of total trade transactions or fees known as brokerage. Traders must carefully select a broker according to his/her personal preferences and services provided by the broker. Moreover, a broker ensuring low brokerage high exposure plans through investment in the securities which are capable of earning sufficient returns must be selected by an individual.
Traders want to earn maximum returns on their investment through which is possible through greater diversification in investment avenues. Brokerage firms and individual brokers provide the following services to individual traders and companies. These include:
- provision of information about the latest market trends:
Stock brokerage companies provide timely market information and guidance to traders so that they can make informed decisions related to investment in stocks and shares. Moreover, Stock brokerage companies appoint the best broker who possesses the necessary knowledge and years of experience for providing necessary information about the latest market trends to the public and their clients.
- Guidance in the creation of a well-diversified investment portfolio:
Stock brokerage companies also help the traders in the creation of a diversified investment portfolio that combines various types of securities floated by companies on the stock exchange. Such a portfolio helps reduce the risk of losing the invested amount and increases the chances of earning greater returns.
- Opening of Dematerialisation account and other agency services:
Stock brokerage firms and individual benefits help traders by guiding them through Opening up of online Demat account. Moreover, brokers and brokerage firms help companies by underwriting their share corpus and providing agency services like collection of subscription amount and reimbursement lower subscription amounts.
- Low brokerage and high exposure plans:
Brokerage firms have their own customized low brokerage and high exposure plans which decreases their risk on one hand and increases their profitability on the other hand. They try to diversify the investment portfolio of a trader which decreases their overall risk and probability of losses.
Apart from the above-mentioned services and benefits, Brokerage firms following services like helping in buying and selling securities and maintaining proper investment records, etc. These services and the benefit of low brokerage high exposure make brokerage firms more appealing than individual brokers.