Wondering What a Stock Market Broker Is? Read This Article to Find Out

Are you wondering what a stock market broker is?account with your stockbroker. These accounts
In this article I am going to tell you what they arerequire a minimum deposit of $500-$2500. If you
and what they do.don't have the money you can use a dividend
A stock market broker is an investor's direct line toreinvestment plan (DRIP). This allows you to
Wall Street. Although the internet has made it easiercircumvent brokers by buying stocks directly from
for investors to take control of their portfolios youthe companies that offer them.
will still need some kind of broker if you want toEvery broker charges a different price (called a
trade stock and bonds.commission) to trade. Commissions on trades vary
Brokers are the people who handle customer's ordersand are based on things like the type of trade, the
to buy and sell stocks or bonds. Basically they act asmethod used to do the trade and other factors.
the middle man between the securities that trade onThere are also many hidden fees and charges that
the market and the investors that buy them. To beyou will need to watch out for, some of them are.
a stock market broker you must pass two licensing· Fees for transferring assets both in and out of
examinations from the national association ofyour account
securities dealers (NASD).· Account maintenance fees
They are the series 7 and the series 63, these· Inactivity fees
exams prove that the broker is informed about what· Fees for not maintaining a minimum balance
he or she is selling and knows all the regulations and· Interest on margin loans
laws in the securities industry. The most important· Sales charges on certain securities
thing you need to realize is that brokers areMake sure you shop around when looking for a stock
salespeople and get a commission when you trade.market broker but bear in mind that many of these
To begin trading stocks you will need to open anfees are standard in the industry.