| Stock brokers are the middlemen between the | | | | full-service stock broker is compensated by how |
| customers and the stock exchange. When individuals | | | | often you trade, and not according to how well your |
| or corporations want to buy stock or sell stock they | | | | stock portfolio performs. |
| must go through a brokerage house because only | | | | Discount stock brokers do not offer any advice or |
| members of the stock exchange can perform | | | | research and they charge lower fees than full-service |
| transactions. Stock brokers determine the best | | | | brokers. They transact trades with no added extras |
| investments for their clients after gathering | | | | and they manage fewer products. They sometimes |
| information from them about their financial abilities | | | | offer online computer order entry services and are |
| and their needs. He or she does this also to | | | | usually paid a fixed salary to execute trades in the |
| understand the level of investment risk the client is | | | | stock market. Discount stock brokers do not solicit, |
| comfortable with. The broker then sends the order | | | | and they are not paid commissions. Those that have |
| out to the floor of the securities exchange via | | | | the lowest prices and the best service, get the most |
| computer or phone. Once the transaction is | | | | trades. They make their money by doing business in |
| completed, the broker supplies the client with the | | | | quantity and typically compete on price and on the |
| price. Stock brokers earn their income through | | | | dependability of their services. |
| charging commissions on every transaction that goes | | | | Regardless of the type of stock broker you decide |
| through them. Their commission is known as the | | | | to use, the very first thing that you should find out is |
| term "brokerage" and it is charged against the | | | | if that broker is registered under the Securities and |
| service that a broker provides to its customers. | | | | Exchange Board of India (SEBI). As long as the |
| In order to become a stock broker, a college degree | | | | broker is registered under SEBI, then he or she |
| is not necessarily required, however almost all | | | | remains accountable to you at all times when playing |
| brokers have one as this job absolutely requires a | | | | the stock market with your money. You also need to |
| stock market investing education. Stock brokers | | | | investigate the history of a stock broker. The best |
| must also be licensed and most take this test after | | | | way to do this is simply asking around. Consult your |
| they have been employed by a brokerage firm for | | | | friends, fellow investors, and relatives. Also, always |
| four months where they have had on-the-job training. | | | | ask your stock broker to provide you with a few |
| In order for a broker to obtain a license, he or she | | | | names of their current clients who have a similar |
| must take the General Securities Registered | | | | background and investment plans as you have. |
| Representative Examination and must also, in many | | | | Be sure that you keep in mind your investment goals |
| cases, post a bond. | | | | and the types of services that you are looking for |
| When deciding upon what type of stock broker you | | | | when choosing a stock broker. Know the stock |
| would like to use when investing in the stock market, | | | | broker's investment philosophy and how that |
| you must first decide if you would like a full-service | | | | brokerage firm chooses to work with its clients. Be |
| or a discount broker. Full-Service brokers offer a | | | | sure to find a stock broker whose services match |
| variety of financial products, as well as investment | | | | your needs and do this by knowing the details of |
| advice, investment strategies, and research. They | | | | what services they provide in order to make money |
| charge higher fees and they may offer stocks, | | | | investing in stock. |
| bonds, annuities, derivatives, and insurance. A | | | | |