Cracking the facts
What is a stockbroker?
Finding a good stockbroker can be the difference between being a successful trader or suffering investment losses. In this video, we’ll discuss what a stockbroker does and how you can find the best one for you.
What is a stockbroker?
Finding a good stockbroker can be the difference between being a successful trader or suffering investment losses. In this video, we’ll discuss what a stockbroker does and how you can find the best one for you.
What is a stockbrocker?
A stock broker is a licensed professional who buys and sells shares on behalf of investors or clients. Shares are bought and sold through sharemarkets such as the Australian Securities Exchange (ASX). Essentially, a stockbroker serves as a middleman between an individual investor and a stock exchange. If you want to buy or sell stocks, you will need a stockbroker (be it a person or a company) licensed to execute trades with the exchange.
Aside from executing trades, stockbrokers can also provide advice on which stocks you should buy and sell. They can help clients find the best prices possible and give advice on how to time the market. In exchange for their services, stockbrokers receive a commission in the form of a flat fee or percentage of the value of the transaction. However, don’t confuse brokers with financial advisers, who offer more holistic advice on your financial situation.
Choosing a broker is one of the most important decisions that a stock investor will ever make. In the age of online trading, more investors are turning to online brokers rather than traditional full-service brokers. An online broker is a brokerage firm or market participant that transacts with clients over the internet. It is basically a non-advisory or discount broker that accepts and executes trade orders from clients using a secure platform. If you need more guidance on choosing an online broker, read here.
Before you choose a stockbroker, identify your investment objectives, your financial goals, as well as your personal investment preferences. These factors will help you create a comprehensive investment strategy you can discuss with your potential broker, who in turn can help you become a successful stock investor.
What is a stockbrocker?
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