Stock Broker

Posted in Definitions on Mar 26, 2008



A stock Broker is a individual person or a large firm that trades in stocks on behalf of you, the client. Clients inform their interest to invest in certain stocks and shares, and the stock broker buys and sells as per requirements of the individual client. Some brokers also give you value added services like financial advices and stock tips for which you pay a fee.

Some years back, trading was a cumbersome process making you dependent on the full time broker who did the job well, but charged a killer fee for it. These days with the advent of Online Stock Trading and other easy processes, you can easily issue the buy/sell order yourself. But these stock brokers have evolved with time and their experience in the field to understand trends and hence their financial advices are still popularly sought after.

Stock brokers are of different types where they provide services like stock calls and tips, or just plain trading services or provide you with a Electronic Communication Networks or ECNs which allow you with faster data transfer. The later is usually used for intra-day trading.

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