Stock Broker - Your Financial Advise

You have surplus funds with you and you want to park your money in some good investment vehicle. You think that you can take a risk to see your money growing. You don′t want to invest your money in a new business and would rather buy some shares of a profit-making company. Then investing in the stock market is a good decision but investing without proper knowledge of share trends may prove hazardous. This is where a stock broker comes into picture.
Any individual trading in stocks cannot directly go to the stock exchange and quote a price for a stock from the seller. He/she has to do it through a “middleman” known as the stock broker. These brokers may work individually, form a small firm, or become associated with bigger brokerage companies. The stock brokers operating in any particular stock exchange have to get themselves registered with that stock exchange.
Making profits from your investment depends more than 80% on the choice of a good stock broker with a strong acumen of the market. There are many brokers or brokerage firms that only carry out stock transactions for their clients without providing financial advice; they charge discounted rates from the clients. However, this is not the case for most. Stock brokers rather act as financial and investment advisors for individuals. They have a good understanding of the fluctuations in the market and are the most learned and professional people to make speculations about the market. For example, a good broker can speculate the price of tomorrow’s stocks by studying today’s market trends of countries that are at a different time zone. This is the most powerful trait of a stock broker. Before choosing any broker you should consider investigating his/her track record. His/her qualification also plays an important role. A broker advising you to short-sell your shares may not be the right option for you. He/she should be able to segregate your investment into low-, medium-, and high-risk stocks so that when the market tumbles your low- and medium-risk stocks don’t get affected much.
It is sometimes difficult to find a broker who understands the financial needs of an individual. Only profit-making attitude does not take a broker too far in career; he/she should love the financial market. Some individuals take decisions and carry out trading on their own. However, it is always advisable to engage the services of a stock broker for a new investor. With a broker in service, your financial tensions may well be of someone else!!
The remuneration of a broker is the salary paid by the brokerage firm and the commission paid by the stock transaction made by the clients. Thus, a broker makes money not out of the volume or number of transactions made by a client, but the profit arising from that trading. The stock brokers spend their days in a very competitive environment trying to learn as much as possible about the market and its trends, building up a huge clientele of successful investors, and trading stocks. Some brokers also provide online trade options, where individuals can trade 24 hours a day, but mostly without personal interaction with their agents. Most, however like to have a real stock broker providing them financial advice, teaching them why and how to invest in specific shares of specific companies, and acting as an advisor on when to carry out stock transactions to gain maximum profit out of each investment.