💛~who are Custodian and broker~💛

Custodian is a person who carries a business of  providing a custodial services.Custodian safeguard the securities (shares) of the client.The custodian keeps the Custody of the securities (shares) of the client. The also maintain incidental services such as maintaing the account's of  securities of the client and accruing the benefits from the securities of the clients on behalf of them.Custodian buy and sells the securities with the approval of the owner of shares.Custodian can be an individual, a financial institution, bank or trust company.

Work of custodians

1) administrate and protect the assets of the client.

2) open a separate custody account and desposit account in the name of each client.

3) record assets.

4) conduct registration of securities.

What is brokerage?

Brokerage 

A financial institution or an individual is called a broker who offers a brokerage account which is also commonly known as a trading account,securities account or investment account. 

They are allowed to buy and sell the securities of the investors. A broker is a middleman for the time you decide to  invest your assets in the market. One can not do this by ownself as a whole day has to be provided to understand the market for e.g:- settling trades, collecting dividends/interest, vote proxies, reporting for all this work you would rely to have a broker.

DIFFERENCE BETWEEN BROKERAGE AND CUSTODIAN

Custodian

A Custodian  safeguards the assets of various clients and also help in maintaining their Transactions and Trades.

They also provides services like managing the investments. Custodians won’t provide brokerage services.

For e.g:- There are brokers in insurance, real estate, vehicle sales.

Brokerage

Broker on the other hand will only act as a mediator between the investor and exchange.

Broker receives an order from an investor like Retail investor or Institutional investors for placing their security exchange.

Brokers can be classified as Discount broker and Full Service Brokers.

Brokers won’t provide custodian services.

For e.g:- State Street

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