What is a StockBroker?

Stockbrokers are legally regulated agents of the market for financial products. He facilitates the buying and selling and trading of stocks on behalf of investors, financial institutions and companies. A stockbroker can also be referred to as an authorised representative or broker. The purchase or trading selling of shares on national stock exchanges is usually performed by the stockbroker.

Stockbrokers are able to handle transactions for retail and institutional customers. The main job of a stockbroker is to buy or sell orders and to perform the orders. A lot of market participants rely on the stockbrokers’ expertise and understanding of the dynamics of the market in order to invest in securities. Stockbrokers can work on their own or as part of an agency for brokerage. Sometimes, brokerage firms can also be referred to as stockbrokers.

Types of StockBrokers

The selection of a stockbroker must be based on the needs of traders. The traders should concentrate on their strategy for trading and choose a broker that can meet their needs in trading. For instance, if they want to short sell stocks, traders will require stockbrokers that have an extensive list of stocks that are available for short.

Here are the most popular kinds of stockbrokers:

1. Full-Service Stockbroker

A full-service broker provides various financial services for clients. Most often clients are assigned personal licensed stockbrokers. The brokerage firms have research departments that provide analyst recommendations as well as access to the initial publicly-traded offering (IPOs).

Full-service stockbrokers also offer services such as financial planning, personal and business mortgages, financial, as well as asset management. Customers can contact their personal stock broker regarding trading options, or utilise online and mobile platforms.

However, those who offer trading capabilities and online access are charged more commissions. Additionally, since the platforms on which they operate for full-service stockbrokers typically cater to long-term investors, they have limited indicators and tools for day-trading investors.

2. Discount Stockbroker

Discount stockbrokers offer financial products and accessibility to the mutual fund as well as banking products and other products. A discount stockbroker provides options and services like a full-service stockbroker but with lower commissions.

Therefore, swing traders and trading on days that are active might find discount stock brokers attractive. Additionally, these platforms cater to the active day traders and investors, and therefore offer more tools for research and trading alternatives as compared to full-service platforms.

3. Online Stockbroker

Direct access stockbroker, a stockbroker online provides services to day traders that charge the lowest commission , usually on the basis of per-stock. Online stockbrokers provide direct access platforms with the capabilities of charting and routing, as well as access to multiple market makers, exchanges as well as electronic communications network (ECN).

Additionally, online stockbrokers provide the benefits of accessibility and speed, which allows the execution of orders with a single click. They also allow the creation of complex choices and orders for stocks. Access to platforms that are heavy-duty typically comes with monthly fees that include exchange and software fees However, the fees for software can be reduced or eliminated based on the amount of shares traded per month by the user.

Qualifications of a Stockbroker (EEE)


A bachelor’s degree in business or finance is required for a stockbroker who is looking to deal with institutional clients. In addition, a thorough comprehension of accounting procedures, financial forecasting and planning, as well as related legislation and regulations is required.


Stockbrokers can begin their career at a brokerage firm in any capacity, including as a college student and get experience while working. To be an effective stockbroker, the person must have a solid comprehension of accounting standards as well as rules of markets for financial transactions.


Stockbrokers must successfully pass to pass the General Securities Representative Exam, which is administered by Financial Industry Regulatory Authority (FINRA). A person has to be funded by a member company that is a member of FINRA as well as a Self-Regulatory Organization (SRO)