| A stock broker is an authorized professional who | | | | The broker must possess a valid license in the |
| trades on behalf of the investor or advices clients on | | | | respective state after clearing General Securities |
| trading options. He has to have expertise in | | | | Registered representatives' exam. They will have to |
| evaluating markets for suggesting to his client | | | | be listed with the securities regulator in the |
| regarding investments giving the best returns. | | | | respective state. This is a regulatory body, working |
| Some of the qualities one has to check in a broker | | | | on behalf of the North American Securities |
| before hiring him are: | | | | Administrators Association. |
| Dedication to keep interest of client in the forefront, | | | | Brokers make lucrative offers for trading through |
| quality of his research and analysis of market, quality | | | | them. Look out for incentives like free brokerage for |
| of service offered, approach to investing -- being | | | | limited time period or number of transactions, free |
| bullish or bearish -- and repute in the trading circle. | | | | periodicals on market reports, free advice in certain |
| Every broker charges a commission for his work. It | | | | sectors of trading or bonus offers. |
| could be based on cost for one whole transactions or | | | | While one must diversify investments, one must |
| cost for one unit of the transaction. In the later, it | | | | verify the credentials of the broker regarding his/her |
| would be beneficial to have large volume of trade to | | | | accuracy in market research, analysis and good |
| minimize the commission. For any advice on trading, | | | | advice for trading. This will ensure healthy returns |
| easy accessibility of the broker on phone must be | | | | from investments. |
| ensured. | | | | |