SHARETIPSINFO >> Articles Directory >>What is the role of stock broker in the stock market?

 

You have always heard about stock brokers, right? What is the role of stock broker? Well, they are professionals who buy and sell stocks as well as other securities in the stock market. If you wish to be a stock broker then you need to pass the General Securities Representative Examination which is rather a very difficult test.  Stock brokers offer different types of services to different clients.   

Role of a stock broker

Stock broker knows how to the trends of the Indian stock market. He keeps up to date knowledge of the stock market. He also keeps information on all the financial developments made by the brokerage firm. So, it is very important that you always seek the advice of a good professional stock broker so that you can keep yourself safe.

Stock broker and stock analyst

Stock analyst can give you good share tips which would help you in your investment process. You will find most of the brokers who have got a background in finance or business with either a Bachelors degree or more than that. Often people confuse between a stock broker and a stock market analyst. You should keep in mind that stock brokers only sell or buys stocks but they never analyze stocks. On the other hand, stock analyst analyzes the stock markets and he might predict what the market will look like in the coming days. Also he predicts how specific stocks might perform in the near future or in a day trade. So, you have come to know the difference between them.

You will find many brokers who earn their income from commissions on sales of the stocks. They charge a certain percentage of the transaction when you tell your broker to buy or sell your stocks. There are two types of brokers – Discount brokers and Full service brokers. Discount service does not make any research neither they also offer any advice. On the other hand, full service brokers actually help you in providing you advice and they charge commissions. So, it is up to you whether to choose a discount broker or full service broker and so you need to know what is the role of a stock broker in order to get the required information of the stock broker and their responsibilities.

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