What does a stock broker do on a day to day basis?
Stock brokers buy and sell stocks, but they also buy and sell other financial instruments, like bonds and derivatives. No one can buy or sell shares of stocks without the help of a stock broker. Stock brokers work for different types of clients including individuals (with lots of money to invest), companies, or institutions (e.g, a university like Harvard).
There are 2 main types of stock brokers. The first type are stock brokers that just do what their clients tells them to do. For example, if the client wants to buy shares of Apple Inc, this first type just buys shares of Apple Inc. The second type of stock broker gives advice to the client. For example, the client doesn't know what stocks to buy, this second type of stock broker will give advice on what to invest in. The second type typically gets paid more than the first type.
If you're the second type of stock broker that gives advice, on a day to day basis, they also do a lot of research to determine which companies to invest in, so they can give good advice.
Stockbrokers effect transactions in securities for people. In other words you buy and sell stocks for people on their behalf. For each trade you charge a commission, so the more trading you do, the more money you make.
You will be in competition with many brokers and dealers (dealers buy their own stocks/bonds and sell them to the public at a markup).
Today the job of a broker has sort of been replaced by computers. Discount online brokers can handle trades automatically and very cheaply, so the need for a person to make these trades has declined.
However what has become very important is the investment advisor. An investment advisor works with clients to help them establish long term financial goals, and then helps them find the right stocks/bonds to help them reach those financial goals.
Investment advisors (good ones) make huge amounts of money. Often times very successful investment advisors will go on to become mutual fund or hedge fund managers. These occupations earn some of the highest annual incomes in the world (right along with large corporate CEOs and managers).
If you are interested in finance and think that managing other people’s money may be your bag, then you may be cut out to become a stockbroker.Also there is no specific degree but there are some courses available to educate you on how it works. This is a very challenging field requires a broad skill set coupled with a willingness to work long hours in order to succeed, the rewards can be enormous for those who make the grade. Of course, it typically takes most fledgling brokers at least a few years to accumulate a large enough base of customers to allow them to live comfortably.