Share Brokers
A share broker, or stockbroker, is an individual who is employed to invest money on behalf of other people. The share broker will be a regulated professional broker whose job it is to buy and sell shares in order to make money. Share brokers will buy and sell shares on behalf of investment companies or other investors. In most cases a share broker will be employed by a brokerage firm but it is also possible to be self employed. The majority of share brokers operate from London, this is where the stock exchange is located. Shares are bought and sold over the stock exchange during certain hours.
A share broker can carry out numerous different services on behalf of an investment company or investor. There is the execution only service, this is a service where the share broker will essentially only carry out the instructions provided by the client. This means all actions relating to the money being invested are mediated through the money owner. There is also the advisory dealing service, this is where the share broker will provide advice on where to invest money but the final decision still remains with the investor. The final service offered is discretionary dealing and this is where the share broker will have total control over the investment. The share broker will establish the clients objectives and then invest the money on behalf of the client.
Investment advisors and financial advisors have a very similar role to share brokers and essentially it is all focused on making money from investment. A share broker will not necessarily be an investment advisor but in most cases they are. In some cases a share broker will invest on their own behalf, in such cases this may just be a regular individual that wishes to increase to value of their investments. There are many different options available for share brokers when looking to increase the amount invested.
Within the UK there are regulations in place surrounding who can legally be described as a share broker. In order to be a qualified share broker an individual must pass the XII Chartered Institute for Securities & Investment Certificate in Securities. In order to gain this qualification two examinations must be passed by the share broker. When using a share broker investors should be aware that they could lose money as well as make money. Many of the investments made are based on hunches rather than solid information.
