What is the Role of Stock Brokers?

A stock broker is a professional who buys and sellsmarket trading.
stocks and other securities in the stock marketIf you are relatively new to stock investment or if
through the book makers from the stock investors.you do not have adequate knowledge of stock
As per the law in United States one needs to passanalysis or if you do not have the time or resource
the General Securities Representative Examination orto do thorough research on the stock market the
the Series 7 exam for working as a stock broker.advisory service is effective for you. It will not only
Brokers provide different types of services to theirexecute your trading directions but also provide you
clients.with effective tips and guidance for stock market
Execution only - In this service the broker onlyinvestment. Though it will be a bit more expensive
carries out the trading according to the direction ofbut then you can significantly gain from the technical
the investor. This is the basic and the mostknowledge and experience of the broker and its
commonly used service of the brokers.research and analysis team.
Advisory dealing - In this service the broker not onlyThe full service broker is the preferred solution for
performs the buying and selling instructions of thethose who do not have the time or knowledge to
client but also advises the investor about which stockmaintain their portfolio. In this case the broker takes
to buy and which stock to sell.all the decisions for investing in the stock market.
Discretionary dealing - This is the mostThis is the most costly broking service but then it will
comprehensive service that a broker provides. In thisnot require you to spend any time for your stock
case the broker has the discretionary power to takemarket investment.
the investment decisions on behalf of the investor.Just like the different types of stock broking
These are the basic services provided by the stockservices there are different categories of brokers as
market brokers and it completely depends on youwell. While choosing your stock exchange broker, it is
which service you will subscribe to. For example, ifwise to select from the reputed stock trading
you are quite apt at stock market analysis and cancompanies as that will make sure you gain from their
regularly watch on the happenings of stock marketrobust infrastructure from analysis and experience in
and the stocks in which you invest, it is better tostock market. That also applies to selecting your
have a stockbroker to execute your buying andonline trading company who will carry out the online
selling instructions. It will not only save the servicetrading on your behalf.
charges but also give you full confidence in stock