stockbroker

A stockbroker is a licensed professional who buys and sells securities on behalf of clients, typically working for a broker-dealer. They may service individual or institutional investors, provide market information, execute trades, and sometimes offer investment recommendations or portfolio guidance. In addition to trade execution, many stockbrokers assist with account maintenance, settlement, and basic financial planning. Online and discount brokers focus on order execution with limited advisory services, usually at lower fees than traditional full-service firms.

Licensing and regulation: In the United States, stockbrokers are registered representatives of broker-dealers and must be registered with the Financial Industry Regulatory Authority (FINRA). Most brokers pursue exams such as the Securities Industry Essentials (SIE) plus the Series 7 for general securities, and Series 63 or 66 for state securities laws. They are subject to continuing education and compliance rules. Some brokers also act as investment adviser representatives and are registered with advisory entities, in which case they may operate under fiduciary or suitability standards depending on the services offered.

Compensation and services: Brokers earn compensation through commissions on trades, markups or spreads, and sometimes through asset-based or flat fees for advisory services. Margin lending and access to premium research or tools can contribute to income. The level of service varies by firm, with full-service brokers offering investment advice and financial planning, and online or discount brokers emphasizing self-directed trading.

Work environment and skills: Brokers work in offices or online platforms, using trading systems, research tools, and client-management software. The role requires knowledge of markets, regulatory requirements, numerical literacy, communication skills, and the ability to explain complex concepts clearly.