Tag: Broker
Choosing a Broker
by wotv on May.20, 2009, under Investment
Depending on the type of investment that is going to do, you may need to hire an agent to handle your investments for you. Brokers work for brokerage houses and have the ability to buy and sell shares on the stock exchange. You may wonder if you really need a broker. The answer is yes. If you intend to buy or sell shares on the stock exchange, you must have an agent. Brokers are required to pass two different tests in order to obtain your license. These tests are very difficult, and most brokers have experience in business or finance, with a Bachelor or Master.
It is very important to understand the difference between a broker and a stock market analyst. An analyst literally analyzes the stock market, and predicts what will or will not be done, or how the performance of certain stocks. A securities broker is just to follow your instructions, either to buy or sell stock … not to analyze stocks. Brokers earn their money from commissions on sales in most cases. To instruct his agent to buy or sell stocks, they earn a percentage of the transaction. Many brokers charge a fixed fee per transaction. (continue reading…)
