Next up are the participants that we investors rely on the most to transact on the exchange. Every investor needs to have a DEMAT and trading account with a broker to trade or invest.
In other words, Stockbrokers or Dealers provide investors the service of buying and selling shares on their behalf. Brokers must be registered trading members of the exchange and must hold a broking license. SEBI monitors all such brokers.
On the other hand, Sub-Brokers are not registered trading members of an Exchange but they act on behalf of a Trading Member (like a broker). All brokers and sub-brokers earn money by charging the investors a fixed fee or a percentage of their trade’s value. This fee is known as commission.
So who is the most significant member of a stock exchange?