Overview
The stock broker is an important person who will help you deal with stock trading. Since the relationship between an investor and stock broker is based on trust and faith, you will have to judge him before and during the relationship.

Kinds of Brokers
The stock broker should be able to guide you with relevant advice and comply with all Stock Exchange regulations. There are 2 kinds of stock brokers – the broker and the sub broker. Their responsibilities may be different but both of them are required to be registered with the stock exchanges and SEBI. It is the brokers who are accountable for fulfilling agreements with the client. The sub broker is only the broker’s agent for the purpose of local facilitation.

Judging Brokers
You need to judge a broker by the impartiality and quality of his advice and the method he adopts to deliver that. A broker is someone who is required to take technical calls during his business so his knowledge and expertise should be well established. Various stock brokerage firms offer several value added services with related disclaimers. You should first understand these services and select the ones that suit your financial goals. Since the risk is yours, you should only take advice based on sound research and not fall for insider tips and the like. Most often, floaters of these tips are those who wish to manipulate stock prices. You can rely on a broker who uses the services of a research analyst for trading. Different regulations have been introduced by SEBI to protect consumers’ interests. SEBI conducts inspections to ensure that all stock brokers provide a reasonable level of service. You can visit Stock Exchange and SEBI websites to check on the antecedents of stock brokers. A broker should also be judged on the basis of his internet connectivity – that is, he should be able to provide a reliable trading platform which functions efficiently, without any glitches.

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