Stock broker salary – Choosing a broker is as important a decision as picking the stocks for your portfolio. Your stockbroker provides advice and counsel and offers an opinion about creating and implementing an investment strategy. Essentially, a broker is the person who handles client orders, and buys and sell securities. Stockbrokers are licensed professionals. In order to be a stockbroker in the United States, a person must pass two exams administered by the National Association of Securities and Dealers (NASD). Licensed stockbrokers have passed the Series 7 and Series 63 exams, which certifies that the broker is informed about the products and services he or she is selling and understands all the regulations and requirements about buying and selling stocks, bonds, and mutual funds.
Stock broker salary – Fifty years ago, stockbrokers were a luxury for the extremely wealthy. Only the well to do invested in the stock market and their stockbrokers provided expertise and information about long term wealth management. Today, most Americans have some money invested in the stock market, and most use a stockbroker to facilitate these transactions.
Broker – There are two different kinds of stockbrokers and brokerage firms, discount and full service. A traditional brokerage firm and broker provides client with one-on-one advice and expertise. A full service broker usually provides extensive research about your portfolio and potential investment opportunities and updates the investor about his or her portfolio. A full service broker is generally available to respond to questions or concerns almost immediately and works to build a personal and professional relationship with his or her clients. Traditional brokers offer more products and receive a commission, sometimes as high as $150.00, per transaction.
Discount brokers provide assistance for the do it yourself investor. Discount brokers don’t offer investment advice or research, but simply execute a client’s buy and sell orders for any given investment. Whereas a full service broker develops a relationship with his or her client, a discount broker does not. When a customer works with a discount brokerage firm, he or she will speak to whichever broker happens to be available. Many discount brokerage firms encourage online trading. These online trading websites do offer comprehensive and in-depth research about stocks, companies and market trends. Discount brokers are paid on salary, not on commission, so their trade-associated fees tend to be lower.
Since research is readily available on line, the biggest difference between traditional and online stockbrokers is costs and fees. Fees can even vary wildly between discount brokerage firms. In some cases, higher fees translate into more customer service features, including access to more research, and faster execution rates.
If you are interested in investing in the stock market, do your research about then type of stockbrokers and brokerage forms available to you. Consider whether you want to build a long-term relationship with a broker, or whether you are a hands on investor who just needs a broker to buy and sell your stock. Be sure to look at all the associated fees and maintenance costs as well, as they can put a dent in an modest portfolio quickly.