Stockbrokers are financial professionals who buy, sell, and trade financial securities for their clients. They serve as intermediaries between markets (e.g., exchanges) and the investing public. Stockbrokers can work for a brokerage firm and handle transactions for a number of individual and institutional customers. They can also act as financial advisors, giving advice to clients on their investment portfolio and investment options to reach a financial goal.
The role of a stockbroker involves dealing with clients directly and managing their wealth portfolios. They work with existing clients and develop new businesses. Brokers need to be honest and provide all correct information, including risk. Exaggerating and providing misleading information is not acceptable. They also need to proactively look for clients, sell their firm’s services, and manage those relationships.
Types of stockbrokers include full-service brokers, who provide a personal service to clients and pass on important exclusive information available only to full-service clients, and discount brokers, who execute trades but do not offer individualized investing advice.
Some key responsibilities of a stockbroker include analyzing stocks, helping clients invest wisely by understanding their needs for different returns on investments or risks involved in each option, and educating clients on different investment options. They also need strong analytical and negotiation skills.
In terms of their daily routine, stockbrokers spend most of their energy finding new clients with assets to invest. They also contact existing clients with recommendations for their portfolio, meet with clients or prospects face-to-face, and wrap up the days paperwork.
