Tips for Getting a Stock Broker

If you're thinking about investing, it would be wise to look into getting yourself a stock broker. A stock broker is part of what they call "a brokerage house" and what a stock broker does is buy and sell stock on the stock exchange. If you are going to try to work the stock market, that is, buy and sell stocks, then you must have a broker.

A certified stock broker generally has either a Masters or Bachelors degree in business or finance. To get his brokers license he must past 2 difficult exams, this is why he must have the Bachelors or Masters degree.

When you do look into getting a stock broker, be sure that what you're looking at is really a stock broker and not a stock analyst. A stock analyst will look at a stock and tell you what he thinks is going to happen with it, if it is going to go up or down. He analyzes the stock market. A stock broker simply buys and sells with no thinking involved. He is on the floor waiting your command. You tell him sell and he sells. He follows your instructions.

There are however, stock brokers that will offer you advice. These are called "full service" stock brokers. The above mentioned "do as they are told with out thinking" brokers are called "discount brokers". Discount brokers don't research at all and don't offer advice. A full service stock broker can provide you with some investment advice and often times have more access to different types of investments. A discount broker is more limited in what he can buy and sell.

Brokers are paid by commission. When a broker buys or sells your stock, he will either take a percentage of the transaction for his fee or he will charge you a flat rate per transaction. Make sure this is agreed upon before he does any buying or selling for you.

So the first thing you need to decide is whether what you need is a full service stock broker or a discount stock broker. If you already have a stock analyst then a discount broker is all you need. If you have some insight to the stock market but want some advice from someone on the inside then a full service broker would better suit you.

Once you decide what you need you can contact brokerage houses and ask about either a full service broker or a discount broker. They will put you in contact with the appropriate broker and you can discuss all the details of your agreement, rates, services, etc. You can now begin playing the game on the stock market!