A stockbroker, also called a Registered Representativeinvestment advisor or simply, broker, is a professional individual who executes buy and sell orders for stocks and other securities through a stock market, or over the counter, for a fee or commission.

Stockbrokers are usually associated with a brokerage firm and handle transactions for retail and institutional customers. Brokerage firms and broker-dealers are also often referred to as stockbrokers.

It used to be that only the wealthy could afford hiring a broker to have access to the stock market. However, advances in technology, such as the Internet, gave rise to discount brokers that allowed small investors to trade the stock markets at a small fee.

Because of discount brokers, nearly anybody can afford to invest in the stock market, even individuals who are based overseas.

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One downside to this is the lack of personalized service only a dedicated stockbroker can offer. A bachelor's degree in finance or business administration is typically required for stockbrokers. A deep understanding of financial laws and regulations, accounting methodsprinciples of economics and currency, financial planning and financial forecasting are necessary to ensure success in the field.

Stockbrokers financial definition of Stockbrokers

Different countries have different requirements for stockbrokers. In Canada, would-be stockbrokers should be currently employed by a brokerage firm and are required to complete definition of stock brokerage firms Canadian Securities Course CSCConduct and Practices Handbook CPH and the day Investment Advisor Training Program IATP. In Hong Kong, applicants have to be working for a licensed brokerage firm and pass three exams with the Hong Kong Securities Institute HKSI.

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However, passing all three exams does not guarantee a license as it still has to be approved by the financial regulatory body. In Singapore, becoming a trading representative requires passing four exams, Modules 1A, 5, 6 and 6A, administered by the Institute of Banking strategy of selling 30 minutes binary options Finance.

A license is applied through the Monetary Authority of Singapore MAS and Singapore Exchange SGX. In the United Kingdom, stockbroking is heavily regulated and brokers must achieve qualifications from the Financial Conduct Authority FCA.

The qualifications required depend on the duties required of the broker as well as his employer. In the United States, the designation "Registered Representative" is obtained by passing the General Securities Representative Exam, also known as the "Series 7 exam," offered by the Financial Industry Regulatory Authority FINRA.

Applicants must also be employed with a registered brokerage firm. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.

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