What is a stockbroker and what is its function?

You have probably wondered many times what exactly a stockbroker is, what exactly he is engaged in and what qualities he must fulfill. Well, let’s try to explain how you can recognize a good stock broker. To begin, we will say that a stockbroker is a person who has extensive knowledge in finance and who plays a very important role in the stock market.

Its main mission is to advise other people with less experience than them about any operation to be carried out in the different financial markets. Actually, we can say that the stockbroker. It is a mere intermediary, a person who is between the broker and the investing person who is interested in buying and / or selling. Therefore, the stockbroker is the person who, through his advice on finances, tries to offer the best returns to his clients.

But his work does not end there. It will also be responsible for the management of purchases and other operations carried out by its customers. That is, the work of a good stockbroker begins when one of his clients buys an asset, and ends when he sells it and closes the operation permanently.

But the stockbroker not only intervenes in the purchase / sale of assets and in the management of securities, but brokers also collaborate in the placement of new securities in the market (public offer of sale, or also known as OPV). In a simpler way we can explain it if we say that, when a company wants to start trading on the stock exchange, they go to the broker, who is in charge of looking for buyers for their shares. This mediation helps these operations occur within the margin of legality and in the best possible conditions for both parties / buyers and sellers).

The stock broker is not a broker, they are very easy concepts to confuse and surely if you have searched for the concept of stockbroker on the internet you will have found some texts in which they attribute characteristics of stock brokers to brokers. This is a terrible mistake of concepts but that is committed in a very habitual way, so that the broker and the broker should never be confused because they are totally different terms. Although it is true that both complement each other so that the functions of the stockbroker can be carried out, and that both act as intermediaries, they are completely different terms.

In summary, we can say that the broker is in charge of informing and advising the client and the companies, while the broker is in charge of executing the orders. However, there are cases in which the brokers themselves have stockbrokers among their employees, so that they themselves advise and advise their clients.

How will we then correctly choose a stockbroker?

If you are thinking of venturing into the world of investment in the stock market with the help that an adviser can give you, we recommend some aspects or requirements that the person you want to hire must meet before choosing to have their services:

Experience: It is a very important requirement that must be met because if you choose a young person with little experience in the stock market, you could make mistakes that negatively influence your investments.

Credibility: You can demand that you teach a table with your results and the returns that your clients have had. It is not advisable to hire an adviser who always fails in his predictions and analysis.

Favorable opinions: Through the internet you can find opinions of customers about the broker you want to hire. Find all the information you can.

Low costs: Stockbrokers earn their salary through the commissions they charge to carry out their operations. Surely the best broker is not the one with the lowest prices, but if he has the most acceptable prices and also meets the other requirements listed above.

In short, is a professional whose role is to help us obtain the ultimate return on our investment with the lowest possible risk, and as such professional is likely to be audited and consulted to verify their profile and to obtain maximum guarantees .

Deja un comentario

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *