Products & Services Provided by Stock Brokers in India

Trading and investment could be an addiction. But you can blame stock brokers in India, mainly discounted brokers dominating the financial market by harnessing people’s interest in their innovative platforms.

Gradual shifting to these new platforms for trading and investment activities has also led to the entry of some amazing services and products that were supposed to be accessible to some limited audiences so far.

If your interest is also picking up a steep growth in the stock market, read on. The article below provides a detailed summary of the major products and services provided by stock brokers in India.

So make sure, because you may be missing an important piece of the market.

List of Products Offered By Most Stock Brokers in India

Before getting in, it’s worth noting that there’s no bound on how much you are willing to invest. You can invest in almost every asset multiple times.

Let’s begin with a list of products now that you can find at most stock broking platforms in India.

Equity

An Equity is supposed to be an uppermost asset of a company. You can understand the value of the statement from the fact that by investing in equity, you will be investing directly into the company.

Equity investors buy a company’s shares to become a contributor to company equity. Even if you purchase a single stock, the company will count as part-ownership.

Compared to all other investment instruments, equities are even considered the safest.

IPO Stocks

Initial Public Offering or IPO stock is another lucrative investment instrument. People invest in IPOs as these assets carry the vast potential to generate a huge return in a short time.

IPOs of a company are launched when they are about to enter the public market. During the process, the company’s ownership is also upgraded from a “Private” to “Public,” which contributes to volatility in the company’s share price after becoming a publicly-listed firm.

But it would help if you were prepared because the forthcoming price range is unexpected.

F&O Trading

Future and Options trading is one of the well-flourishing trends of the stock market. Rather than investing directly in equities, people prefer investing in these two derivative instruments for their short-term goal accomplishment.

You can call this stock market section a hub of buy & sell traders who bid on an underlying asset’s price prediction and not on the assets as a whole. This even makes F&O one of the riskiest products in the stock market.

Currency Trading

Currency trading is simply the concept of trading a pair of currencies in exchange for another and making gains from price differences.

Market and economic reasons determine the price of currencies, making them fairly volatile and an attractive instrument for traders.

To make the most out of currency trading, brokers even make margin facility available that lets you buy more at minimum investment.

Mutual Funds

Mutual Funds, or MFs, are one of the safest picks in the world of the stock market. As the name describes, these financial vehicles occupy a pool of assets to lure investors to come and invest along with other shareholders.

These assets don’t require special expertise to manage as the positions are actively adjusted and managed by financial experts in the backend. MF may generate adjusted returns.

Fixed Deposits

Fixed Deposits guarantee the security of return on investment. Add a lump-sum amount to your portfolio and watch it add return on investment. The financial instrument is risk-free and can give returns better than bank saving accounts.

Commodity

Commodity investments are linked with agricultural products. In the Indian stock market, commodity investment has been of special interest to investors.

Many of them invest in commodities to minimize their portfolio volatility. However, government or economic reasons may impact commodity investment prices.

Bonds

Bonds are government-issued instruments intended to borrow money from investors. The collected fund hereafter is used across certain public or government-launched projects.

These products are also referred to as fixed income instruments that pay back interest on investment to the investors. But the investment must be held for a certain period.

ETF

ETF or Exchange Traded Funds is also quite similar to MF. Like mutual funds, an ETF is also a pool of investment securities.

The only difference is that you can invest in an ETF in the regular stock market. Whereas Private firms mostly manage Mutual Funds.

Gold ETF

Gold Exchange Traded Funds are also popular instruments that invest in gold. These instruments track domestic physical gold prices and are called passive financial assets.

NCD

NCD or Non-convertible debentures are unconvertible instruments. Companies issue NCDs that can be held by banking firms, individuals, or corporate bodies. These assets have been found linked to higher risk exposure, so invest cautiously.

NPS

The National Pension System is also a popular investment instrument most brokerage firms offer. But unlike other financial instruments, NPS intends to save for retirement age.

Individuals receive a standard interest rate for their retirement contribution till the maturity of the plan.

Derivatives

Futures Contract, Options Contract, and Credit Default are some good examples of derivatives. Simply put, these financial instruments get their price value from underlying assets and have no value.

Crypto Currency

Cryptocurrency has also started being offered by many stock brokers. You can invest in these digital assets or trade them for a short return.

List of Services Offered By Most Stock Brokers in India

Below is a breakdown of services offered by most stock brokers in India. After all, based on these services, a brokerage firm strives to offer you the best user experience.

Demat Account

Demat account is one of the basic services almost every stock broker in India provides. The account lets investors hold financial securities and shares in electronic format.

Further add-ons grant ease tracking shares and effectively carry out further investment operations. Everything is provided in one place to serve a wonderful user experience.

Trading Account

A trading account is another essential thing of the stock market. The account offers an upgraded environment to day traders or short-term investors.

One can frequently buy and sell assets in a trading account without even encountering trouble or malfunction in due course.

Margin Account

Margin Account is an upgraded facility provided with most brokerage accounts. Simply put, brokerage lends the investor cash in these accounts, which enables them to purchase more securities at less investment.

The main aim of the Margin Account is to boost investors’ purchasing power while exposing them to great earning potential.

2-in-1 Account

2-in-1 accounts let investors collectively invest in any of the financial instruments. Such as, one can invest in stocks or mutual funds and manage both investment products on one desktop.

The account brings ease to managing two different accounts by bringing everything into a single interface.

Trinity-Account

Trinity Account is an upgraded version of a 2-in-1 account. These accounts keep your portfolio well-diversified and allow you to manage your multiple accounts easily.

Simply put, you can manage, track, or conduct changes in MF, Stocks, and Derivatives.

Stock Advisory Account

Stock Advisory Accounts builds a holistic approach to investing. However, the account is more bent toward the learning side.

Simply put, clients gain exposure to some useful investment advice and receive an enhanced understanding of the financial world.

Loan Against Share

Every stock broker doesn’t offer the facility in India except for some well-established names backed by a Financial Firm or a Banking firm.

Simply put, ICICI Direct and Kotak Securities are a few good names that grant you loans against shares you have in your portfolio. However, certain terms and conditions may be applied to such services.

Brokerage

It’s hard to build trust in the stock market without a trusted brokerage firm. These privately-owned companies play an imperative role in connecting buyers and sellers.

These firms facilitate smooth, errorless transactions between the market and the public and endeavor to meet all minor to major requirements of clients to serve an improved user experience for brokerage charges.

In return for this contribution, they charge a client a small fee which is fairly reasonable.

Retirement Planning

Many stock broking firms even offer retirement plans in the form of SIPs or NPS that let a person save a significant amount for retirement. These investment vehicles are comparatively less risky.

But they tend to generate more returns. Thanks to compounding benefits. If you have patience, of course, then this service can build a safe future for you.

NRI Services

NRI service is also a unique feature provided at most broking platforms. These services mainly intend to manage the portfolio of Indian nationalists living in Foreign. Alternatively, it builds a road map for foreign investors to invest in India’s stock market.

Global Investment

Some broking firms let any investor from India invest in the global market. A global investment service could be the best fit for you if you are also interested in other nations’ economies or market conditions.

Customer Services

Without customer support, carrying out trading and investment operations is fairly challenging. Thus, no broker these days forget to provide their clients with this facility to ensure instant resolution is possible.

Corporate Services

Corporate services are a dealing desk for enterprises and businesses intending to progress their investment and business plan with the brokerage firm.

Tax

Taxation is one of the biggest stumbling blocks for many investors as accounting profits, losses, interest, taxes, and fees aren’t always easy. But these additional tools keep things sorted for clients.

Insurance

Portfolio Insurance aims to give thorough protection to the client’s investment. In the event of market crashes or other bad happenings, such services come to the rescue.

Conclusion

These are the most common yet popular products and services most stock brokers in India provide. Equities are one of the pervasive financial instruments as numerous financial instruments are connected.

Other investments are equally good and can generate good returns quickly. You can also take support from additional brokerage services to access more benefits.