17:32 23 January 2013
A broker is a person who helps you when it comes to working the stock market. This relate to buying and selling shares, which many people do as a way of investing.
Here are some types of brokers explained;
A stockbroker acts on your command and tries to get you a good deal when it comes to buying and selling shares in the stock market.
One type of broker who does not give any advice when it comes to your finances is an execution only broker. They are merely there to carry out your commands when it comes to buying and selling shares, so it would be worth knowing this.
This is also true for many stockbrokers who deal in shares on the internet, as well as companies who handle share dealing online.
One tip to remember is that online share dealing seems to be a cheaper option when investing.
Although, if you are unfamiliar with investing in this way it may be worth seeking help. You can seek the help of an independent financial advisor or a banking advisor with regards to this, but charges may apply for some services.
Another type of broker is an advisory broker. This type of broker may be a good idea if you are new to share dealing as they lay the information down for you, although it is up to you to make the decision based on your options.
When it comes to share dealing, it would be worth knowing that a more long-term approach would be more suitable if you want to help maximize your gains.
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