All the transactions related to the stock exchanges are conducted by the Licensed holders only. These people are called as Share brokers. For doing any share transaction, we have to contact the broker since all type of transactions will be conducted by the brokers only. In all most all stock exchanges, the brokers are conducting the share market business in large scale. The small investors are not encouraged by them. These brokers have sub-brokers net work.  For regular trading the small investors have to approach the Sub-brokers. The transactions of sale and purchase are taken up with sub-brokers only. On receipt of business orders by the sub-broker the same will be diverted by the sub-broker to his main broker who will conduct the trading in stock exchange.

The stock broker means that who can conduct the business transactions on behalf of the client or he may called the member of stock exchange. As per the clients directions he used to issue the buy and Sell orders. Some stock brokers are interested to give their financial advices. In previous times the investment in stock market has costly nature and all the transactions have to conduct through full service broker only. The full service brokers used to collected huge fee from the customers. Now-a-days the situation is completely changed. Only on payment of nominal fee, trading can be done.

There are 3 types of brokers:

1. Full service brokers:  The services related to Investment Research Advice, Tax Planning, Retirement planning is provided by him.

2. Discount broker:  For conducting business transactions on less rates the discount broker is use full to the customer. The financial investment advises are not given by him.

3. Direct access broker: Through the Electronic Communication net work (ECAN) and with direct access help he will be useful to do very fast business transactions. The day traders like active, they can utilize the direct access brokers only.