What are the Responsibilities of Stock Broker?

There are a good number of issues that stockbrokers are responsible for especially in terms of research and things that fall in the same range. It is important to note that there are two main categories of stockbrokers, and these include; personal stockbrokers and Institutional stockbrokers. Although they play the same role when it comes to job description, they relatively vary when it comes to client base. Equity research is one of the main things that they do in the course of disbursement of their duties. Overall, this revolves around the sell-side and buys side of stock, but also entails doing research on commodities and bonds. Here are some responsibilities of a stock broker;

1) Provision of Advice

It is important to understand brokers do offer solid advice to their client based on the prevailing market condition. Of course, a small fee is always charged based on the stock and other variable factors. In some cases, a client will have to sign papers at his own discretion based on the advice offered.

2) Semi-Banking Services

There are times that they are allowed to offer semi-banking services based on the client’s needs and this should be done within the periphery of the law. In a nut shell, the banking services can include but not limited to interest rate bearing accounts, electronic deposits, and credit card services. They can also offer check writing services depending on the type of transaction they are executing.

3) Transacting other Securities

The fact that brokers are well versed with the financial market trends and other pillars of this trade positions them to transact business on other securities too. These can include; purchase of bonds executing exchange-traded funds, as well as mutual funds. You need to understand the fluidity of this market makes it possible for a piece of information to be relevant across board.

4) Monitor and Examine Client Portfolio

The fact that dealing with securities can be highly beneficial makes the risks to be relatively high. This means that the accounts of clients must be closely monitored in order to achieve better end results at the end of the day. The market trends must be watched on a daily basis because of volatility in some sub sectors. Therefore, brokers will always be on their toes ensuring that nothing is left to chance.

5) Build Relation

This responsibility is often for those that work for institutions whose duties are defined to act in the best interest of client and build a lasting business relation.  In case this is not achieved and broker does not act in the best interest of client disciplinary action might follow. In fact, this is one of the reasons why most brokers ensure that their equity research is up to the expected market standards.

It does not matter how the client pays the broker because whether by commissions, upfront payments, any broker who misappropriate clients’ money is dealt with severely within the periphery of the law.

Biography:

Jake Hyet is an experienced stock broker with over 20 years experience in Equity research.  He has been advising thousands of clients who have see their investment grow over the years. He is a gentleman who also lectures higher institutions in financial matters.