Chapter 3 · Brokers, fees and settlement
What a broker actually does
A broker is a licensed intermediary, not an adviser. Knowing the difference protects you.
12 of 50 · 5 min
Only a licensed broker can place an order on NEPSE. You cannot trade directly with the exchange. The broker takes your instruction, submits it, and handles the settlement and paperwork afterwards.
What is a broker responsible for?
- Executing the orders you place, at the price you specified.
- Settling the trade and moving shares to and from your Demat.
- Deducting the applicable charges and taxes at source.
- Providing you with contract notes and statements.
What is a broker not responsible for?
A broker is not your financial adviser, and their staff's opinion about a stock is not research. Brokers earn commission on turnover — they earn more when you trade more. That is not dishonesty, it is just an incentive worth knowing about when someone suggests you switch positions frequently.
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