A Study on Brokerage income Contribution by Investors

Abstract

Stock brokingis a service which gives retail and institutional investors the opportunity to trade shares. This stoke broking is done with the help of the stock brokers who link the investors with the share market. Stock brokers will trade shares both on exchange and over-the-counter, dependent on where they can find the best price and liquidity. Typically, a stock broking firm will charge commission on the trades it makes on a client’s behalf, or a fee for retaining its services. The study focuses on improving the income of the brokers which is contributed by the investors. The primary data has been collected by questionnaire method. The collected data was analysed using chi square, ANOVA method. The analysis clearly stated that the income level is dependent on the trading done by investors. So if we increase the trading the income contributed by the investors increases and also if the client size of the investors would act as a major part in increasing the income of brokers. 0.2% on every trade is taken as the income of the brokers. As the result of the study made on improving the broker age income by increasing the client size which is made possible by funding for clients, providing 3 in1 account, publishing daily market research, providing easy access through modern technologies like mobile based trading platform, web based trading platform.