Financial Stock Broker Services

Most of the buying and selling on the stock market is handled by stock brokers on behalf of their clients, who are the investors. A stock broker or stockbroker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. There are three types of stock broking service.

First type is the execution only service which means that the broker will only carry out the client's instructions to buy or sell. Second type is the advisory dealing where the broker will advise the client which shares to buy and sell, but leaves the final decision to the investor.

Third type is the discretionary dealing where the stockbroker ascertains the client's investment objectives and then makes all dealing decisions on the client's behalf.

Full-service brokers give advice about which stocks to buy and sell, and often have large research departments that analyze market trends and predict stock movements, for their clients. They charge the highest commission rates in the industry. Your decision to use a full-service broker will depend on your level of self-confidence, your knowledge of the stock market, and the number of trades you make regularly.

For investors who wish to save on commission fees they can use the service of discount brokers. Brokers in this category charge much lower commissions, but they don't offer advice or analysis. Investors who prefer to make their own trading decisions, and those who trade often rely on discount brokers for their transactions.