Traders Vs. Stock Brokers

There are many different jobs for stock market professionals. There are fund managers, stock brokers, floor brokers and market makers. The terms seem quite confusing and some of the names overlap the same positions with minor variations. The two most confusing terms are stock broker and stock trader. Often people use them interchangeably but that's not correct.

Function

Both the stock broker and stock trader deal in the market but at totally different levels. The broker executes trades his clients request. The stock trader makes money through finding the right trade to make.

Work Place

Brokers work in the retail market either at a broker dealer or for a bank to service retail customers. Traders may also work for a bank or other company but they make the decisions on what trades to purchase to make the most profit.

Sales

The trader's most important job is to make a profit. The broker's job is to make a sale.

Pace

Brokers spend time talking to clients more than dealing with actual trading. The trader is glued to the trading floor or computer screen constantly. They have to often move fast to make the best trade.

Orders

Often, stock brokers take orders from clients and the traders fill them by purchasing the inventory of stocks for the broker dealer.

Considerations

If you love being with people, then your personality is more that of a broker. Traders often work alone.

References

• Trading Jobs