Stockbroker
Registered Representative
Broker - a stockbroker is the agent who handles the public's orders to buy and sell securities, commodities, or other property.
Brokers get paid commissions that are based on the dollar value of the transaction.
The larger the transaction, the more they get paid.
Brokers only get a portion of the total commission that you as an investor pay (the dealer
(company they work) for gets the rest).
Because it is such a heavily regulated industry, to become a stockbroker, brokers need to pass a rigorous test that covers the regulations as well as the concepts involved with the securities markets.
The NYSE Series 7 test is the full-blown stockbroker exam - allowing them to sell everything from stocks, bond, mutual funds, limited partnerships, variable life (if also an insurance agent), annuities, etc.
The Series 6 is for mutual funds only (usually taken by insurance salespeople) and the series 3 is for commodities.
There are two basic types of brokers: full service or discount.
Full service brokers make recommendations to you, provide research, and assist you in properly allocating your portfolio to meet your specific needs.
Discount brokers only facilitate the trades you decide on.
If you are doing your own research on the internet, deciding for your self which stocks to trade - go with a discount broker.
And don't be afraid to ask what their commission is; it is a regulated industry and they expect you to ask.
If you are using an online broker you should easily be able to find this out.
