| The term broker popularly called stock broker or | | | | broker or "rep" but it totally depends on you, which |
| "rep" is a title given to the person who is basically | | | | service to choose depending on your experience and |
| your representative in the stock market. This term | | | | know-how of stock markets and trading going on |
| actually originated from FINRA's official designation | | | | there. If you are a novice into trading, here are some |
| "registered representative". Being a stock broker | | | | facts and some strategies on "trading in the market". |
| means that he is individually responsible for buying | | | | There are two basic ways to get engaged into |
| and purchasing stocks and securities from the | | | | trading stocks: |
| market. It may sound interesting and easy | | | | 1:- get a broker for you and ask him to open an |
| money-making job but, to be a broker in the U.S, | | | | account for you. Then, depending on your |
| you need to clear an examination known as "General | | | | requirement and necessity, take his services and pay |
| Securities Representative Examination or the series 7 | | | | them their commission. Stock brokers normally have |
| exam". Once you are cleared from this, you can | | | | years of experience in trading. |
| become an official stock broker and will be able to | | | | 2:- open an account for you and do all your trading |
| provide the following services to your clients. | | | | by yourself. The only benefit is that you'll be saved |
| Execution: under this service, the broker is able to | | | | from paying brokers for managing your money. In |
| work only as per the instructions of the clients. | | | | this system, you'll be the in charge of your money |
| However, this is the basic and most common service | | | | and also you'll have to connect your bank account |
| given by brokers and taken by the clients. | | | | with the account you open for trading. The problem |
| Advisory: in this service, the stock broker not only | | | | with this is that, if you are not fully equipped with |
| works under the orders of the clients but can also | | | | the knowledge, you'll waste lots of your valuable time |
| advice them on where and when to invest, using his | | | | researching on companies to invest. In some cases |
| own experience. | | | | the drawback can be a financial loss too. |
| Discretionary: this is the most comprehensive or the | | | | A good word of advice would be if you are willing to |
| most important and complicated service given by the | | | | invest money into the market today, then a broker is |
| share brokers. Under this service, the broker not only | | | | highly recommended, it doesn't matter how much |
| performs the above mentioned two services but also | | | | experience you acquire into trading and stock |
| invest client's money by his own will using his | | | | markets. With stock brokers you can also use stock |
| discretionary powers. Note that he can use client's | | | | trading software and can keep track of all trends and |
| money only by the name of the client and for his | | | | ups and downs of the market and can give best |
| betterment. | | | | shot for your money to get maximum profit out of |
| These are the basic services provided by any stock | | | | stock markets and trading. |