The Role Of A Stockbroker In The Financial Market
If you are interested in working in a fast-paced environment and having a keen interest in numbers, then you need to consider the job profile of a stockbroker. While many of us are aware of the term stockbroker, hardly few of us understand their role in the financial market. Stockbrokers are the agents who buy and sell securities for and on behalf of the clients and earn a commission for each trade or transaction executed. They are also called the investment advisors as they assist, provide guidance and help investors in investing in the right security to earn lucratively.
Trading in the stock market isn’t a child’s play. A stockbroker needs to learn the basic skill of trading and the trading tactics to trade efficiently in the stock market. Of course! Investors do look for an experienced stockbroker as he might have better insights into the stock market compared to a broker with lesser experience. Typically, it takes 7 – 10 years for a stockbroker to get well established in the market. The first few years would be grueling with less or no business and profits.
What is their role?
To put in simple words, the role of a stock broker is to buy and sell securities on behalf of the clients in return for a commission. Thus in order to buy and sell, a broker must be up to date with the trading information and market conditions. As brokers are the authorized persons to trade in the stock market, they have a large scope in the financial market. However, the challenging factor apart from trading that every broker will face is finding their clients. Higher the clients higher would be the profit as brokers earn commission for every trade entered into. Every broker needs to market themselves to attract clients.
A workday for a broker begins long before the opening of the stock exchange. They start their day early by updating themselves with the financial news, trading secrets, doing research on the assets available, seeking for a source that gives them a better trading approach, finding clients and understanding their needs. Brokers begin to trade when the stock market starts to function in a day which is usually 9.30 am. They advise their clients on the best way to maximize their investment.
While trading is the primary motive for a trader, customer service and satisfaction are the factors that every broker must consider pivotal. In fact, trading and customer services both go hand in hand. As customers are unfamiliar with trading knowledge, they completely rely on the stockbrokers to deal with their investment. Every broker must maintain a high level of trust and reliability with their clients. These two are the essential role for any stock brokers.