1.17What is a broker?
A stockbroker is a SEBI-registered company that lets you buy and sell on the exchange. You cannot trade on NSE/BSE directly; you trade through a broker.
Only registered members can send orders to the exchange. Brokers handle the technology, your account, risk checks and paperwork.
Like a travel agent who books flights for you because you cannot book directly with the airport.
Discount brokers (e.g. Zerodha, Groww, Upstox, Angel One) charge low fees and give you an app. Full-service brokers (e.g. ICICI Securities, HDFC Securities, Kotak Securities) charge more but may offer research and advice. Always check that the broker is registered on the SEBI website.
- Never share your login, OTP or PIN with anyone, including people claiming to be from your broker.
- Use only SEBI-registered brokers.
- A broker connects you to the exchange.
- Discount vs full-service brokers differ in fees and services.
- Always check SEBI registration.
Q1. Can you place an order on NSE without a broker?Show answer
No, you need a SEBI-registered broker.
Q2. What is the main difference between discount and full-service brokers?Show answer
Fees and services: discount brokers are cheaper; full-service brokers offer research and advice.
Q3. Should you share your trading OTP with a caller from "the broker"?Show answer
Never.