What is the difference between broker and DP ?

What is the difference between broker and DP ?

  • A stock broker links buyers & seller through stock exchanges. He charges broking charges which is called brokerage. On the other hand, depository participant keeps the securities in safe electronic form. This means they acts a custodian of securities 


  • Though they work the same for a customer like a broker since there is a slight difference between them where a Broker buys and sells securities related to stocks for clients through exchanges while DP holds stocks of investments in Demat form. 


Example :

  • Is Zerodha a DP or broker?
  • Zerodha is a depository participant of the CDSL depository. This means Zerodha works as a service agent for a Demat account which is held by CDSL, one of two central depositories.

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