What is a stock/share broker?
A Share broker is a dealer who buys and sells the share for the clients. There are two types of market structure one is primary market and another secondary market. You need to open a Demat account to invest in IPOs in the primary market and need to have a broker account to sell IPOs and buy other shares. In Nepal, brokers are registered in the Securities Board of Nepal.
Types of Share brokers
Full-Service Broker:
Full-Service Broker provides different services like analyzing the market, making portfolio customers, buy selling suggesting, investing ideas, etc. There are no full-service brokers.
Discount Broker
The discount broker only buys and sells the share for clients, and takes a commission. It doesn’t have other services like a full-service broker. This type of broker is found in Nepal.
Which share broker to choose?
Good Capital and Daily Trading
Before choosing a broker you should know about its total capital. Securities Board of Nepal or any registered board will unregister the broker if the broker doesn’t have enough capital. You also need to be aware of brokers’ daily trading. It is always good to choose a broker who does large daily tradings.
Close to Doors
The broker office you choose should be always close to doors. There might be different problems like late sending of payments, broker account issues, problems in the website, and so on. So if your broker is close to you it will be fruitful for you.
Good services
Good services include good behavior by brokers, sending payments at the time, picking calls at a time, and solving your issues.
What happens if you don’t choose a right broker?
- Sending payments late
- Not picking calls at a time
- If a broker is not near you, you couldn’t solve the problem in time
How to make a broker account?
You can make a broker account by filling a simple form. You need to visit the respective broker with your citizenship, Demat account details, and your photo.
Here is the List of brokers in Nepal. Click Here
Can you make a broker account from home?
Some brokers have online registration services. So, you could fill up the online form from the broker’s website and fill up the online form. You might need to go to brokers to verify your account.
If you are a beginner in the stock market and want to invest in shares. Click here to know share market mistakes to avoid huge losses.