History Of Stock Broker in Kolkata | How Stock Broking Companies In Kolkata Started?

Stock broker in Kolkata is perhaps the most important cog in the share market as their services enables investors and market participants to trade and invest in the share market. Still one also needs to know what are stock broking companies and how stock broking firms in Kolkata started.

What is a stock broker?

A stock broker or stock broking firm in Kolkata are those companies which allow potential market participants to open a demat and trading account. This account facilitates the market participant to trade or invest in the securities market. Once the market participant places either a buy or sell order, it is forwarded by the stock broker to the exchange. The exchange then matches this order with another counter order and is executed. The settlement occurs at the end of the day, once the market closes down.

So, it can be seen from the above process that any of the stock broking companies act as a mediator of the process and not the end itself. SEBI also came into this scene as the regulator of the securities market. The body mainly formulated new rules and regulations to make sure that investors were not defrauded or cheated in any way and should such a thing were to occur, they at least had a body with whom they could lodge a formal complaint.

All stock brokers in Kolkata or elsewhere were mandated to be registered with SEBI and hence they were even known as sebi registered stock brokers in Kolkata.

History of stock broking firms in Kolkata

Stock broker in Kolkata have a rich history. The city used to be the capital of British India but later was replaced by Delhi. While it was the capital, the city was a major trade and manufacturing hub. Many immigrants also came to this city to start a business and the city began to flourish by leaps and bounds. Later on, a stock exchange was set up in the city itself which allowed both traders and investors to trade shares between themselves.

Later on with more modernization, digitization and the advent of internet broking companies came about which allowed people to trade and invest in the share market without being physically present at the exchange. One could place an order through their computer and it will be executed instantly and the market participant can also avail other services from their share broker in Kolkata such as reports, contract notes and research reports without needing to physically visit their office or talking with their representative.

Different types of stock broking companies

Currently, there are two different types of stock broking companies operating in India.

1. Full-service broker: A full-service broker is a traditional broker. These types of SEBI registered stock brokers in Kolkata provide not just the usual service of buying and selling securities, but they provide additional services as well which can include daily market reports to keep you abreast of all the recent happenings in the stock market, future market outlook to make you ready for future market events.

They also provide technical reports to aid you in your short-term trading journey, long-term investing recommendations, if you are not sure as to which stock to pick and many other services. In return, they charge you brokerage based on your traded value which can range from 0.1% to 0.5% or more.

They will also assign a dedicated relationship manager to you, whom you can contact whenever you face any issue and they will also help clear any queries.

2. Discount broker: The discount broking concept is rather new to the world of investing with the first player entering this line just back in 2013. These types of brokers focus solely on the low brokerage or free brokerage model. As such they either charge you a flat fee per order no matter how much is your traded value, or they just make it free, wherein you do not need to pay anything. But this also comes at a cost where the client does not get additional services of report, recommendations and some other services that may be entirely unavailable or available, will be charged separately.

Summarizing the differences between a full-service broker and a discount broker in the below table:

So as can be seen from the table, the full-service stock broking companies have additional charges for their services, but the services are also well worth it. These share broker in Kolkata make sure to give the best service as it is important for both new customer acquisition and customer retention.

It should be noted that SMIFS Limited is also a full-service traditional broker and also one of the best stock broker in Kolkata. Thus, if you are looking to start your trading journey will all the facilities and services of a traditional broker then SMIFS Limited which is a Kolkata stock broker can be a very good choice. So do not delay your investment journey, start investing from today itself and witness the power of compounding.

To open your free demat & trading Account visit: https://www.smifs.com/eKyc

You can also call or WhatsApp at 9830121215 to Talk with our Sales and Marketing Team about Exclusive Offers and Deals.