DEFINITION of 'Stockbroker'

1. An agent that charges a fee or commission for executing buy and sell orders submitted by an investor.

2. The firm that acts as an agent for a customer, charging the customer a commission for its services.

BREAKING DOWN 'Stockbroker'

It used to be that only the wealthy could afford a broker and have access to the stock market. With the internet came the explosion of discount brokers that let you trade at a smaller fee, but don't provide personalized advice. Because of discount brokers, nearly anybody can afford to invest in the market now.

  1. Commission

    A service charge assessed by a broker or investment advisor in ...
  2. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  3. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  4. Analyst

    A financial professional who has expertise in evaluating investments ...
  5. Agent

    1. An individual or firm that places securities transactions ...
  6. Front Running

    The unethical practice of a broker trading an equity based on ...
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  1. How are asset management firms regulated?

    In principle, the asset management industry is largely governed by two bodies: the Securities and Exchange Commission (SEC) ... Read Full Answer >>
  2. What is a typical day in the life of a stockbroker, from start to finish?

    One of the great attractions for many that become stockbrokers, is that there is no such thing as a typical day. In fact, ... Read Full Answer >>
  3. There are so many stockbrokers out there. How do I go about choosing the best one ...

    If you decide that you have the knowledge and experience to take on stock investing, or if you feel you would like to give ... Read Full Answer >>
  4. How long does a stock account have to be dormant before it can be escheated?

    A stock account is typically considered dormant and eligible for escheatment after five years of inactivity; however, this ... Read Full Answer >>
  5. Do financial advisors have to find their own clients?

    Nearly all financial advisors, particularly when new to the field, have to find their own clients. An employer may provide ... Read Full Answer >>
  6. Do financial advisors get drug tested?

    Financial advisors are not drug tested by any federal or state regulatory body. This means you may receive your Series 6, ... Read Full Answer >>

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