5 answers
Joshua
Student
Miami Gardens, Florida
13
Questions
Asked
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Is the finance planner the same thing as a stockbroker?
#finance #Stockbroker
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5 answers
Kelly Albright
Operations
17
Answers
Las Vegas, Nevada
Updated
Kelly’s Answer
Hi Joshua,
I can definitely help with this question, as I used to have my Series 7 Broker's license. There are different types of Financial Professionals and there is overlap. Regarding your question about these two, here goes:
1. A Stockbroker is a person who holds a Series 7 Stockbroker's license and typically that Stockbroker will also hold an additional license such as a Series 63 or 66- these are the standard licenses making it legal to buy and sell securities on a given market and typically Stockbrokers are only licensed to buy and sell in specific states. They can give information to a client to help them make informed choices, but they cannot recommend investments or provide financial advice. A Stockbroker should never say "You should buy/ sell this investment" but they can say "Here is information about the historical performance of this investment that will help you to make a decision about whether to buy or sell"
2. A CFP is a Certified Financial Planner who along with having a Series 7 and perhaps a Series 63 or 66 (making them a Stockbroker,) has gone through lengthy additional training and Certification Process to become licensed as a Planner and provide financial advice. A CFP is supposed to help a client meet their financial goals by actually making recommendations and they are supposed to say "Based on your budget, time horizon and goals, your best investment choices are A, B and C." They have a deeper understanding of Life Insurance, Annuities, Certificates and in some cases, Commodities than someone with a Series 7
3. CFPs also tend to partner with Tax Professionals and Attorneys who specialize in things such as Real Estate purchases and Estate Planning
4. CFPs will vary widely in their areas of specialty and years of experience
I hope this helps!
Kelly Albright
I can definitely help with this question, as I used to have my Series 7 Broker's license. There are different types of Financial Professionals and there is overlap. Regarding your question about these two, here goes:
1. A Stockbroker is a person who holds a Series 7 Stockbroker's license and typically that Stockbroker will also hold an additional license such as a Series 63 or 66- these are the standard licenses making it legal to buy and sell securities on a given market and typically Stockbrokers are only licensed to buy and sell in specific states. They can give information to a client to help them make informed choices, but they cannot recommend investments or provide financial advice. A Stockbroker should never say "You should buy/ sell this investment" but they can say "Here is information about the historical performance of this investment that will help you to make a decision about whether to buy or sell"
2. A CFP is a Certified Financial Planner who along with having a Series 7 and perhaps a Series 63 or 66 (making them a Stockbroker,) has gone through lengthy additional training and Certification Process to become licensed as a Planner and provide financial advice. A CFP is supposed to help a client meet their financial goals by actually making recommendations and they are supposed to say "Based on your budget, time horizon and goals, your best investment choices are A, B and C." They have a deeper understanding of Life Insurance, Annuities, Certificates and in some cases, Commodities than someone with a Series 7
3. CFPs also tend to partner with Tax Professionals and Attorneys who specialize in things such as Real Estate purchases and Estate Planning
4. CFPs will vary widely in their areas of specialty and years of experience
I hope this helps!
Kelly Albright
Andrea Carlin
Client Manager
4
Answers
Boston, Massachusetts
Updated
Andrea’s Answer
A financial planner and a stockbroker are different careers. The major difference relates to the type of service a financial planner provides to their customers. A financial planner offers holistic planning, offering advice in many different areas, such as education planning, tax planning, retirement planning, budgeting, investments, insurance and mortgage/credit advice. A financial planner typically looks big-picture and assesses a client’s entire financial situation.
A stockbroker, meanwhile, is a professional who executes trades on behalf of clients and works to receive the best execution on those trades. A stockbroker is more transactional. A stockbroker typically may work on commissions whereas a financial planner may offer fee-based advice. The financial industry is changing, and the market is moving away from traditional “stockbrokers” and toward more robo-advisors and online brokers.
Both jobs are demanding and require great communication skills, some self-marketing and attention to detail. Overall, there is a good amount of crossover between these two jobs, either can offer a rewarding career.
A stockbroker, meanwhile, is a professional who executes trades on behalf of clients and works to receive the best execution on those trades. A stockbroker is more transactional. A stockbroker typically may work on commissions whereas a financial planner may offer fee-based advice. The financial industry is changing, and the market is moving away from traditional “stockbrokers” and toward more robo-advisors and online brokers.
Both jobs are demanding and require great communication skills, some self-marketing and attention to detail. Overall, there is a good amount of crossover between these two jobs, either can offer a rewarding career.
Richard Cashman
Industrial Engineer
2
Answers
Charlotte, North Carolina
Updated
Richard’s Answer
A stock broker and a financial planner are different. A stock broker is in the business of buying and selling financial instruments like stocks, bond, options, etc. They can buy and sell these things for other people or for other businesses. A financial planner is someone helps other people plan their financial futures. A financial planner would help someone create a budget, provide advice on what to invest in, help them save money and grow their wealth. They might also provide some legal guidance on tax laws, etc. I believe, but am not certain, that both registered stock brokers and registered financial planners need to take courses in finance and investing and then take some certification exams.
Great answer!
Kelly Albright
Hassan Habis
8
Answers
Jeddah, Makkah Province, Saudi Arabia
Updated
Hassan’s Answer
stockbrokers and financial planners both might work in the finance market. however, stockbrokers buys and sells financial instruments like stocks, bonds, ...ec. on the other hand, financial planners help individuals plan their financials and provide advices on what to invest on for a better retirement. financial planners would also help people understand what they can and cannot spend on based on their current and future situations.
Sachin Hegde
125
Answers
San Jose, California
Updated
Sachin’s Answer
Hi Josua,
Thanks for the question!
Financial planners and stockbrokers may both work in the finance market, but they perform two different roles. Stockbrokers are business professionals who focus on the sale and purchase of financial stocks, whereas a financial planner helps people understand their financial situations and the options available to them. Both professions require a combination of communication and analytical skills.
ref# https://work.chron.com/financial-planner-vs-stockbroker-27379.html
Hope this helps!
Thanks for the question!
Financial planners and stockbrokers may both work in the finance market, but they perform two different roles. Stockbrokers are business professionals who focus on the sale and purchase of financial stocks, whereas a financial planner helps people understand their financial situations and the options available to them. Both professions require a combination of communication and analytical skills.
ref# https://work.chron.com/financial-planner-vs-stockbroker-27379.html
Hope this helps!