who is a stock broker?

do really want to know who is a stock broker and what he does?

A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors.in simple words , a stock broker is a person or a firm that trades on its clients behalf, you tell them what you want to invest in and they will issue the buy or sell order. Some stock brokers also give out financial advice that you a charged for.

A transaction on a stock exchange must be made between two members of the exchange — an ordinary person may not walk into the  Stock Exchange , and ask to trade stock. Such an exchange must be done through a broker.

There are three types of stockbroking service.

* Execution-only, which means that the broker will only carry out the client’s instructions to buy or sell.
* Advisory dealing, where the broker advises the client on which shares to buy and sell, but leaves the final decision to the investor.
* Discretionary dealing, where the stockbroker ascertains the client’s investment objectives and then makes all dealing decisions on the client’s behalf.

I can think of three different types of stock brokers.

1. Full Service Broker – A full-service broker can provide a bunch of services such as investment research advice, tax planning and retirement planning.

2. Discount Broker – A discount broker let’s you buy and sell stocks at a low rate but doesn’t provide any investment advice.

3. Direct-Access Broker- A direct access broker lets you trade directly with the electronic communication networks (ECN’s) so you can trade faster. Active traders such as day traders tend to use Direct Access Brokers

So as you can tell there a few options for a stock broker and you really need to pick which one suits you needs.