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Stockbroker
by Tina Gramble
http://www.ystockbroker.com
Heres some information on what a stockbroker does in case
this is what you want to be when you grow up. The job of a
stockbroker is to perform stock trades for his or her
clients because they either cant or dont want to. A
stockbroker goes under many names such as financial
consultant, financial advisor, financial planner,
investment advisor or portfolio manager. If a stockbroker
trades on their own behalf, they are sometimes called
dealers, stock traders or just plain traders.
With the advent of automated Internet stockbroking systems,
the client often has no personal contact with his or her
stockbroking firm. In this format, 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 large share of the
business by offering highly discounted commissions. The
disadvantage of theses companies is that they do not offer
investment advice -- all they do is execute orders.
To become a stockbroker you have to get licensed by the
National Association of Securities Dealers (NASD) in order
to trade and give clients advice about trading. Sometimes
brokers are referred to as registered representatives or
account executive. Stockbrokers charge a flat fee for their
services or they get a percentage based commission for
making trades. If trading with a client in a principal
capacity a broker charges 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.
When choosing a stockbroker, it may be a good idea to speak
with different people at length so you can get a feel of
their personality. If you dont feel comfortable with a
person then he or she is not the one for you. How can you
trust someone with your money when you dont like them? A
good stockbroker will listen to your needs and advise you
accordingly on what he or she thinks you need at the time.
A good broker should pay attention to your needs and be
interested in your long-term goals and give you the advice
you need that will make you financially secure when you
decide to retire.
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