Many times, we read news on stock and articles on stockbrokers and the investment they have made. The question, however, tallies in various people minds about who a stockbroker really is.
Stockbrokers or an investment adviser is a professional occupation in the financial services sector. Just like banking, a Stockbroker is a professional person who handles transactions, that is, buying and selling of stocks for both retail and institutional customers through a stock exchange or over the counter in exchange for a fee or commission.
They provide informed and effective advice on investing, growing and managing one’s money. They are professionals at providing financial advice. Holding the position of Investment Advisor, these individuals have access to cutting edge knowledge and investment strategies in the financial sector; as a result, the best course in fulfilling one’s investment goals is hiring a stock broker.
A stock broker provides insight into the complexity of the financial sector, the advantages, the disadvantages, the risks and rewards according to the financial utility of one’s investment vehicles.
An investor is the client of a stock broker; therefore the broker is focused on the financial objectives of the investor that will ultimately turn into a profit. They handle investments and answers important questions that pertain to one’s investment vehicles.
A major drawback of a stock broker is the cost associated with the service. Also, it is not uncommon for the broker to still make money even if one has lost money to a certain investment. This can create hard feelings and an unsatisfying relationship between the broker and the investor.
Another drawback pertains to conflict or complaints against the stock broker by the client; in the sense that the broker will want to get paid and the client will want sound financial advice. In cases that the client thinks that thinks that the broker is acting out of his financial interest, there are avenues by which the client can formally complaint to the firm that employs the broker. At this point, all complaints will be addressed and answered according to the firm’s adherence to maintaining a quality service and a good reputation.
Nevertheless the drawbacks, a stock broker is the most professional individual to meet in matters of financial advice and investment, this is because a stock broker has the best interest of the investor in mind as he won’t let the client fall into a financial pitfall.