A stockbroker is a professional individual who accomplish buy & sell orders on behalf of clients for stocks & other securities in a listed market or over the counter(OTC), usually for fee/ commission. Stockbrokers are usually associated with the brokerage firm and handle transactions for retail & institutional customers. Brokerage firms & broker dealers are also sometimes referred to as stockbrokers themselves.

What are the Duties of Stockbroker?

Stock brokers take on a enormous amount of responsibility. Not only they are responsible for managing their client’s money but they must stay up-to-date on the latest tax laws, market research & financial news to provide their client with the best outcome. These financial agents work in stressful, fast paced environment, but for the right individual can be a rewarding career.

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So, what will I actually be doing?

Your role in a stockbroker job is to manage the financial portfolio of your client, so this could be an individual/ company. On the advice of investment analysts, you will discuss with your client which shares to buy/sell to get them the best return on their money.

Successful brokers

Successful brokers are quick thinking, full of bright ideas & not afraid to make risky decisions in an instant. As a stockbroker you will be expected to: Research the financial markets Consult investment analysts Report to your clients Monitor your clients investments Pitch for new clients Stockbrokers often work in large, restless offices and you will spend much of the day fixed to your phone and computer screen monitoring any changes & reporting to clients.

Customer Service and Recruitment

Stock brokers often must create their own client list even those who work for larger trading companies. Customer recruitment & customer service is a large portion of what stock brokers usually do. A broker may spend their day calling prospective clients, following up with the current clients & cultivating a relationship with other industry professionals. Since customers rely heavily on their stock broker to deal with their investments and brokers must maintain a level of trust & security by contacting their customers weekly/ monthly to update them on their portfolio/ new investment opportunities.

Client Recommendations

It is imperative that a stock broker should fully understand his clients investment goal, financial condition and her risk tolerance. When research and recommending investments for his client, a stock broker must do so based on his client need by selecting investment that are suitable for her portfolio investments. For example, a stock broker would not suggest a high risk stock for a low risk client.

Disclosure and Advisement

Brokers are required to reveal all information related to any investment suggestion – including risk. Brokers must be honest with their customers and cannot provide fake, misleading or exaggerated statement.

Trade Execution

A stock broker initiates trades (buy and sell) on behalf of their client. This is typically done electronically/online, but some brokers execute trades by phone or in-person on a physical dealing floor. Trades depend on what the stock brokers feels is necessary for their client’s portfolio at the time their investments are analyzed.

Fiduciary Duty and Fair Dealing

Stock brokers earn through commission. therefore, there is a risk for dispute between a stock brokers interest and the interest of his clients. The broker, however has a fiduciary duty to put the need of his clients above his own. A stock broker is also subject to the rules created by regulators, such as the Financial Industry Regulatory Authority. These regulatory agencies regulates stock brokers to be honest, trade fair and only make trades that meet the needs of the client – not trade by themselves.