Stock brokers cease to be middle men between a stock exchange and the customers. Be it an individual or a company when they are planning to buy or sell stocks, they need to take help from a brokerage house. The reason being only members of a stock exchange can undertake transactions. As a stock broker the best investments for their clients are figured out after going their financial details in depth. The broker places the order via a phone or the computer. The stock broker earns money in the form of commissions via the transactions undertake through them. This commission is termed as brokerage and basically is a service that the brokerage house provides to their esteemed customers.
To become a stock broker not only you need a college degree. But all brokers who are part of the industry would not deny the role of education in this field. The stock brokers might take a license after being in this industry for a particular period of time. In most cases to obtain a license he needs to be part of an examination and if deemed fit they need to sign a bond.
When you are planning to invest in stock market you need to consider whether you want a full time broker or a discount broker. Both of them do have their own set of pros along with cons. The full time service brokers offer a variety of financial products coupled with proper research on financial matters. They do charge higher fees and have a variety of products as part of their basket. It is determined on how often you end up trading and has no bearing to how your stock portfolio performs.
On the other hand discount brokers do not provide you with any services and their fees are lower than full time brokers. They undertake trade with no extras and deal with a few products. They provide computer level services and to execute trades in the stock market a salary is paid. These types of brokers do not solicit and are not paid commissions. The ones that offer the lowest of commissions and provide best of trades are the best. They are known to make business by working in quantity mode and how dependable their services tend to be.
Irrespective of the broker that you are going to use it is necessary to find out whether it is registered with SEBI. Once they are registered with SEBI they are accountable on all transactions that they undertake with your money. Even it is necessary to investigate the history of the stock broker. The best way you can do this is by asking around. You can consult your family and relatives around. It is possible to ask the stock broker to provide names of a few clients about the background and even the investment plans that they possess.
When you are looking for a stock broker it has to match up with your investment goals