What is the difference between the broker,sub-broker and diller?
To explain you the difference between the three, I will take a fictitious example. Assume that you want to buy 100 shares of Reliance. The shares are listed on BSE and NSE. The stock exchanges don’t sell the shares directly to investors. Only the members of the stock exchanges can buy or sell the shares. So, brokers are the members of the stock exchanges, who are authorized to buy/sell shares on the stock exchanges. These brokers pay deposits or membership fees to the stock exchanges in order to remain members of the stock exchanges. These fees/deposits are sometimes in tens of millions of rupees. Even after spending the fees/deposits for membership, the brokers may not be able to reach the entire country. The broker might have branches in some cities. But in other cities, the broker might authorize some other firm or person to buy/sell shares on his behalf using the broker’s membership ID. Such person or firm is called a sub-broker. And dealer is the person, who is actually sitting on
