Tremendous amount of responsibility is bestowed upon the stock broker. Not only they should be updated with the latest in the financial domain, but they need to be well versed with the tax matters, market research so that their clients get the best in terms of return. Stock brokers often create their own client portfolio, and this is applicable to someone, who is working in large trading firms, as well. Customer service along with recruitment is a large part of the job profile, which most of the stock brokers do. A significant part of the day is spent in getting in touch with the clients via various communication tools, following up with the current clients as well as developing relationships with the existing ones.
The clients tend to rely considerably on the knowledge along with the skill sets of the brokers. So, they must ensure that he maintains the trust as well as security part by providing regular updates to his clients on a weekly or monthly basis as it seems fit. In addition to this, any opportunity of new investment avenues should be communicated to the clients from time to time. In fact, they are requested to disclose all information pertaining to investment declaration, and this is applicable to risks, as well. In short, they must be honest with their clients and must not provide misleading information.
They are known to initiate trade, whether it is buying or selling of stocks. Normally, this is done electronically, but some of them choose alternative methods like phone or in person, which deals with the physical trading floor. Trade depends a great deal on what the broker feels at the current situation and he must have one eye on the investment portfolio of the client. It is of fundamental importance that a stock broker understands the financial goals of the clients, his current financial situation along with the risk tolerance levels. When the broker is researching as well as placing his recommendations to the clients, he must thoroughly consider the investment needs of the client and what he is expecting out of them. For example, a stock broker would be wrong to recommend a high risk stock for a client who has a low risk portfolio.
Stock brokers make an earning through commissions, and at some point of time, there is bound to be a conflict in interest levels between them and the clients. They are governed by certain regulatory agencies and they must be honest with themselves along with their clientele. However, in the recent times, with the emergence of the online trading platform, their roles along with responsibilities have taken a back seat. More and more clients are opting for this route as they can trade sitting in the comfort of their room. In this regard, tools like brokerage calculator online also helps as you can clearly understand the commission, which needs to be paid. Having said this, there is one fact that remains that the expertise and recommendations of a stock broker still remain unchallenged.
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