Who is a Share Broker?
A share broker is referred to as an individual or organization that is specifically provided with a license for participation in the securities market. They participate on behalf of clients. The share broker plays a role of an agent for buyers as well as sellers linked to the securities. However, a commission is involved with the service.
Share broker provides (as an agent) a service to the investors only. It signifies that the broker will purchase for the buyer as well as sell for the seller by ensuring that the best price is received for the client.
An investor needs to consider the share broker as an individual, who is providing valuable information and service to give appropriate assistance in making the perfect investment decision. They are sufficiently qualified to give answers to all the questions that the respective investor wants to know and to help to take part in the regional market.
A share broker is a professional individual, who is basically involved with a brokerage firm and manage transactions for both retail and institutional clients. Broker dealers and brokerage firms are also referred to as share brokers.
Earlier, the concept was like that only the affluent people were able to hire a broker to get access to the stock market. Nevertheless, with the advent and progression of the internet, discount brokers have come into existence. With their help, small investors can also trade the stock markets for a minimal fee.
For the sake of discount brokers, almost anybody is capable of investing in the stock market, this list also includes people, who are based in the foreign countries. Another disadvantage is that scarcity of personalized service that only an experienced and dedicated share broker is able to offer.
A bachelor’s degree in finance or business administration is basically needed for share brokers. An in-depth understanding of accounting methods, financial laws and regulations, principles of currency and economics, financial forecasting, and financial planning are crucial making a big success in this field.
With the increasing number of share broker, individuals have a choice of lots of share brokers to select from; however, it is somewhat difficult to choose. You have to be very clear about your requirements that you expect from the Brokers. Two important points are discussed below to help you in deciding the appropriate broker for you.
Full Service or Discount Broker
The major difference between them is the former one (full service broker) will charge you brokerage in a form of percentage belonged to your trade value. On the other hand, the charge of a discount broker is much cheaper that will be dependent on per trade.
Online Trading or Offline/Phone Trading
Many brokers have initiated to give online trading services to their clients. A percentage of them provide trading on the phone or physically at their respective location. You have to decide which mode is perfectly suitable for your requirement.
If you want to know about Top share broker, then refer to any reliable website.