What a Stockbroker Does
16731 N. W. Hwy 19, Fanning Springs, FL 32693
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Stockbrokers perform financial investments for their clients because they either dont know how to trade of they dont have the time to do their own trading. Stockbrokers go under many names such as a financial planner, financial advisor, financial consultant, and investment broker or portfolio manager. Many stockbrokers make their own trades and when they do they are called dealers, stock traders or just plain traders.
With the advent of automated Internet stockbroking systems, the client may not have personal contact with his or her stockbroking firm. In this way, the stockbroker's system
performs every stockbroking functions, including obtaining the best market price, executing and settling the trade. These automated discount brokers, such as Ameritrade, E-Trade and Scottrade, have taken a huge share of the business by offering highly discounted commissions. The disadvantage of these companies is that they do not offer
investment advice -- all they do is execute orders.
A stockbroker must be licensed by the National Association of Securities Dealers (NASD) to trade stocks and advise clients on various finance issues. They are commonly
referred to as a "registered representative" or an "account executive." When acting as an agent, the stockbroker usually charges the client a flat fee and/or a percentage-based commission for undertaking the trade. When trading in a principal capacity with a client the broker charges the client a markup or markdown from the prevailing market price.
If a person is considering hiring a stockbroker one needs to decide whether they want a full service broker or a discount broker. If you know a lot about trading then maybe a discount broker is right for you because they make the trades as you tell them to. If you dont know much or anything about trading, then a full-service broker will help you make decisions and give you advice on what they think you should do. A full-service broker can be a bit pricey although it may be worth the expense in the long run for you.
Other things to think about when choosing a stockbroker is do you want someone to talk to about such matters or do you know enough about trading yourself and are confident with your decisions? After choosing a stockbroker, you should feel comfortable speaking with them and they should not pressure you in any way to make a certain trade or bully
you into buying. A good stockbroker will find the best investments for you personally and pays attention to your specific needs and takes the time to know what you want for your future.
Tina Gramble operates the website Y Stockbroker, inc. which a site dedicated to researching Stockbroker related material and contains up to date Stockbroker
news and views. For more details please visit http://www.ystockbroker.com
