Stockbrokers serve as intermediaries between markets (e.g., exchanges) and the investing public. Brokers take customer orders and try to fill them at the best price possible. In return, they earn a fee known as a commission. Today, many stockbrokers have transitioned to financial advisors or planners as online brokerage platforms allow users to enter their own orders via the web or mobile app.<\/p>" } } , { "@type": "Question", "name": "What's the Difference Between a Discount and Full-Service Broker?", "acceptedAnswer": { "@type": "Answer", "text": "
Traditionally, a discount broker would only buy and sell on customers' behalf. In contrast, a full-service broker would provide a broader breadth of financial services such as research, advice, portfolio management, and more. Today, as online brokerages have forced commissions down to zero, discount brokers have distinguished themselves by providing research and other services in addition to pure execution.<\/p>" } } , { "@type": "Question", "name": "How Do Stockbrokers Execute Trades?", "acceptedAnswer": { "@type": "Answer", "text": "
Stockbrokers execute trades by placing orders on behalf of clients through stock exchanges or electronic trading platforms. These orders can be market orders (executed immediately at current prices) or limit orders (executed at specified prices). The client may choose what level they wish these orders to be placed at or may elect to have the stockbroker decide on their behalf.<\/p>" } } , { "@type": "Question", "name": "Do Stockbrokers Have Access to Insider Information?", "acceptedAnswer": { "@type": "Answer", "text": "
No, stockbrokers are prohibited from using insider information for trading as it is illegal and considered securities fraud. They rely on publicly available information and research. Keep in mind that stockbrokers may have access to insider information but are precluded from profiting from the information.<\/p>" } } ] } ] } ]