Broker
A SEBI-registered intermediary that routes client orders to an exchange and holds the client's trading account.
How it is identified
Test: the firm holds a SEBI registration as a stock broker and is admitted as a trading member of an exchange
Unit
qualitative
In depth
A broker is an agent, not a counterparty: it places your order into the exchange's book, where an unrelated investor takes the other side. Discount brokers charge a flat fee per order and give you a platform; full-service brokers charge a percentage and bundle in research and advice. Your securities do not sit with the broker — they sit in your demat account at a depository, which is what limits the damage if a broker fails. Confusing the broker with the exchange or the depository is common and matters, because they carry very different risks.
Worked example
You buy shares worth ₹2,00,000 through a discount broker charging a flat ₹20 per order. The cost is ₹20 regardless of size. A full-service broker charging 0.3% would charge 0.3% x 2,00,000 = ₹600 for the identical trade.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Broker” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.