When we buy and sell stocks and share, commodities or even deal in currencies and foreign exchange we seldom directly deal with the buyers and sellers. We always go through the mediators and therefore the role of stock brokers in general and stockbroking business in particular is very important. it is quite likely that not many of us would be aware of the roles and responsibilities of stockbroking business. Hence over the next few lines we try and understand their actual position and why they continue to be considered as an important part of any buying and selling activities. This will help all the stakeholders to try and understand the roles of these professionals in the right perspective.

Who Is A Stockbroker

Put in plain and simple words, stockbroker could be an individual or organization. They have a special license which enables them to participate in the stock markets on behalf of their clients. He basically performs the role of a facilitator or agent. Stockbrokers help traders to buy and sell stocks and shares and for the services rendered, they charge a commission. Their role is to perform the functions of an aggregator. His main objective is to ensure that his clients get the best deal. A buyer should be able to buy it at the lowest rates possible and when helping sellers, they should ensure that the traders get the best deal out of such sales.

Their Role Is Very Valuable

When we look at reputed services providers and agents like CMC markets there are reasons to believe that they have an important and perhaps even indispensable role to perform on behalf of their clients. They provide valuable services and also pass on vital information to the traders. This helps the investors and traders to take an informed decision on buying and selling. In fact most of the brokers offer extremely useful and relevant buying and selling tips and act as valuable counselors and advisors. They help traders to make the right investment decision by offering their expertise and experience to their clients. They also have the required licenses to do so. Hence, when it comes to buying and selling of stocks, the role of these stockbrokers is extremely important and perhaps even indispensable.

Are They Governed By Any Rules

Yes it is a fact that stockbrokers have to go through the required training and qualification. Once they are successful in getting the desired education, they will have to apply for license to work as stockbrokers. The license is given based on various parameters and knowledge of the stockbroking and financial market is extremely relevant and important. Once they get the license they will be in a position to advise their clients and help them to get the best deal on buying and selling of shares.

Things That Traders Should Know

When hiring these professionals, the traders should be sure that they are hiring the right professionals. Apart from the mandatory license they also should be able to have the right kind of knowledge and information about the market. This will help them to guide the traders and investors properly. Hence, apart from licensing and qualification, traders should be sure about the overall experience and credentials of these professionals.

Their Role In The Future

Given the technological changes which are taking place, and the emergence of reputed service providers like CMC Markets the role of these professionals is also bound to change. They no longer can act as mere intermediaries. They should be able to aggregate value to the customers. This is possible only if they are able to efficiently perform the role of counselors and advisors rather than acting merely as mediators.

They should also learn to move ahead with times and technology has made things quite tough for many brokers. Their margins are getting squeezed and the volume of transactions has also increased tremendously. Hence at the end of the day there is no doubt that while the role or stockbrokers will continue to be relevant, they also need to change with times and must take into account the fact that the entire concept of stock buying and selling has become extremely transparent and democratized to say the least. They must invest in technology and only then will they be able to survive and grow.