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Does A Stock Broker Really Help You To Earn Or He Earns From You?

A stock broker, also known as an investment broker or a trader, is an expert who buys and sells stocks on behalf of customers. They assist clients in purchasing stocks, securities, bonds, and other financial products from exchanges such as the New York Stock Exchange, Nasdaq, and the London Stock Exchange, etc. To put it simply, a stockbroker is a middleman who executes transactions on behalf of investors. 

In this article, we will discuss how a stock broker helps you to earn money and how they make money through this profession. So, keep reading. 

How Do You Buy And Sell Stocks In A Stock Market?
To carry out a successful stock trading transaction, you will need to work with a professional stock broker who will assist you in purchasing and selling stocks in a more efficient manner. This stock broker can be an authorized person or a company to conduct stock transactions on your behalf. 

However, selecting a reliable stock broker is one of the most important decisions you will make as an investor. This is due to the fact that a good stock broker not only assists investors in determining stocks but also guides them in selecting the best stocks capable of generating higher returns for them. 

Types of Stock Broker 
There are two types of stock brokers available in the market – full-service stockbrokers and discount brokers. Continue reading to explore more about the different types of stock brokers. 

•    Full-service Stock Broker – A full-service stock broker provides more than just assistance with stock purchases and sales. They review the investor’s portfolio, provide financial advice, and advise them on the best investments to make with their money. Usually, new investors or people with a large sum of money prefer to work with full-service stock brokers due to their financial expertise. 

•    Discount Stock Broker - A discount stock broker, on the other hand, will only help with transactions. They usually don’t provide investment advice or tell investors whether they are making a wrong investment decision. Their sole responsibility is to execute the trade on the investor’s behalf. Discount stock brokers are ideal for people who don’t require financial advice or simply need the transaction to be completed.
Picking The Right Stock Broker
If you are a beginner, it is recommended that you should consult with a full-service stock broker as they will guide you on the day-to-day aspects of share trading. In other words, a broker acts as a mediator between an independent stock brokerage firm and a share trader. Furthermore, ensure that your stock broker has valid certificates and license to act as a broker.

How Do Stock brokers Make Money?    
A stock broker is primarily a salesperson and thus, they make the high bucks through incentives and commission. When clients purchase or sell stocks via a stock broker, they will be charged a fee or a commission. Stockbrokers earn more money in fees or commissions the more stocks they trade. 

Conclusion
In a nutshell, a stock broker not only helps you to earn money, but also earns huge commissions from your purchase. But before purchasing any stock from a stock broker make sure they are reliable and authorized as there are many frauds are roaming. 
 


20-06-2022
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