How Does a Stockbroker Spend a Workday?

What is a Stockbroker?

A stockbroker is a security sales agent who helps average people and small businesses trade on the stock exchange. A stockbroker acts as the middle man because the multitude of retail investors aren't able to trade directly on the exchange.

What a Stockbroker Does

When contacted by a potential client, a stockbroker will negotiate the deals of an exchange. These details include the prices at which the client is willing to buy and sell. The stockbroker's company will find another client who is willing to purchase the item or, if it is unable to find a buyer, the trade will go to the market floor or will trade electronically.

How a Stockbroker Makes Money

A stockbroker makes his salary by charging a fees for each trade he completes. This fee can very depending on the reputation and experience of the broker, or the size and value of the trade. A stock broker can also make additional money by finding a lower price for a stock than was originally negotiated with the client.

Obtaining Clients

Stockbrokers attract clients by a variety of methods. The best source for new clients is word of mouth from current clients. However, an online presence through a business website, or typical promotional sources such as TV, newspaper and telephone book advertising also are popular methods to gain clientele. Networking also is crucial to obtaining and retaining broker clients.

Using Knowledge of Trends

It is important as a stockbroker to understand the way that the stock market works, as well as how market trends affect clients. Often, a client knows little about the market or the available stocks. In these circumstances, a stockbroker will recommend stocks to clients. The stockbroker's job also includes keeping the client's best interest in mind by respecting the client's wishes in stock purchases and by recommending suitable stocks for your clients.

Time Requirements

The financial rewards of a stockbroker can be great, but so also is the time commitment. It is not unusual for a stockbroker to work 60 or more hours a week. This consists of time with clients as well as time researching stocks. The stock market is constantly changing, and stockbrokers must stay on top of these changes by studying potential stock options for clients.

Resources

• More Stock Broker Career Information