A stock broker. Who is it and how to work with?
24 / 10 / 19
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Stock broker - a participant in trading on an exchange (stock - that is, shares and securities, or others). It is important that this sales representative is necessarily a legal entity. Only such an intermediary can act on behalf of and in the interests of individual clients. To carry out activities in the interests of the client, an appropriate agreement is usually concluded and the amount of remuneration for intermediary services is indicated. There is also an introducing broker - this is an individual or legal entity that accepts applications for concluding transactions in the interests of the client, but does not maintain their account and does not accept payment of deposits or margin.
Stock broker services
Stock brokers provide services to their clients - legal entities or individuals. In the latter case, contact with the client and the implementation of specific actions may fall on one specialist - a trader. An important point: services for representing interests, buying and selling values (stocks, currency, goods) can be provided in several variations:
- with the issuance of recommendations to clients and with their consent and approval, at their own discretion (by agreement),
- strictly fulfilling the client's requirements, without giving advice.
Depending on their needs, clients can choose one or another option for joint actions with a stock broker.
It is also sometimes important to distinguish between the services of a broker employed by a legal entity (in fact, an employee) and the services of an independent specialist.
Functions of a stock broker
Transactions on the exchange are impossible without the services of a stock broker - a specialist licensed to conduct this type of activity. The functions of a stockbroker include mediation, provision of client interests, consultation, record keeping, execution of additional orders. Services can be provided separately or in combination.
Representing the interests of clients, the broker works on his behalf, seeking better conditions for the transaction. Provision of consultations related to issues of work on the stock exchange is increasingly a free service. Record keeping is the direct responsibility of the stock broker.
Required Qualifications for a Broker
The broker profession is suitable for a small percentage of people. A financier, in addition to extensive knowledge, must have natural inclinations for this type of work. Required qualities for a broker:
- quick reaction, excellent memory;
- ability to quickly navigate and make informed decisions;
- impeccable knowledge of mathematical disciplines;
- stress resistance;
- knowledge of foreign languages;
- sociability, openness.
The ability to quickly resolve disputes that arise on a daily basis on the stock exchange is the main duty of a brokerю While choosing a brokerage company, you should pay attention to work experience and reviews. A firm that has been in the forex industry for many years is more likely to have adequate executive brokers under the guidance.
Choosing a broker - a little common sense
The stage before starting work on the exchange is choosing a broker. A little common sense is introduced into the atmosphere of an incomprehensible newcomer by international agencies that make up objective ratings. When choosing a broker, you should rely on the reviews of novice and experienced traders. It is important to compare the following factors:
- quality and speed of order processing;
- solvency;
- list of currency instruments;
- spread;
- 24/7 technical support.
A complete list of unscrupulous brokers, that we do not recommend working with is available here.
