Origin Of Stock Broking
A Stock broker is nothing but a person who buys and sells securities from the stock market on behalf of other investors. Stock broking began in the United States of America. Philadelphia was the first city in America to have a stock exchange. After which New york became the heart of all stock transactions and Wall street became synonymous with investing and trading.
Since the early part of the 1980's stock broking was allowed in America. And in the late part of 1990's stock broking went online and now there are several online stock brokerages on the internet and hence online transactions happen in a jiffy these days.
A stock broker may also be a financial advisor or an investment consultant these days but in India you need to be registered with the Securities and exchange board of India in order to act as a financial advisor. As the name suggests a stock broker mainly deals in stocks that is the shares of a company. Other professionals such as foreign exchange brokers deal with currencies where as commodity brokers deal with commodities.
All stock market transactions that is buying or selling of shares have to take place through a broker or a brokerage. Even if you make online transactions you need to do it through an online stock broker. For performing the transaction online stock brokers charge a small brokerage fee or commission fee for the transactions that they do for other companies or retail investors.
The brokerages that a stock broker may charge are different for various brokerages as they might have a different business model for the same.
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