Stockbroking

Stockbroking

A stockbroker is a broker who buys and sells securities on behalf of clients on a stock exchange market. Securities refers to certificates documenting ownership of stocks, bonds or other financial instruments. Stockbroker is a regulated profession in the financial services industry, typically licensed after passing a series of professional examinations. The FINRA (Financial Industry Regulatory Authority) has an explanatory list of all the professional designations that stockbrokers use.

In Canada, a stockbroker is usually called a Registered Representative or Financial Advisor. In order to provide investment advice and practice other services related to the profession, the individual must successfully pass the CSC (Canadian Securities Course), in addition to other exams and certifications. The financial services industry is indeed a very regulated one, both for the protection of investors and the general public.

Growth. Illustration: Elena

Historically, Wall Street and brokers were associated with a lot of glamour, power and money. However, since the financial crisis and various scandals affecting the trading and exchange industries, stockbrokers’ reputation has somewhat taken a turn downwards. Still, many professions in finance and accounting (a closely related industry) continue to command very impressive salaries. For example, it is not uncommon to see online job boards advertisements with salaries hovering around six figures for professions such as Controller or Comptroller (British spelling). A Controller is usually a senior accountant overseeing all accounting activities and financial operations of a company, with a professional accounting designation and extensive experience in the accounting field.

Other related professions include, but are not limited to, Investment Advisor or Financial Advisor. Notwithstanding, a Financial Advisor may or may not be a stockbroker, since depending on the license they hold they may or may not be allowed to sell stocks. Still, some persons hold several licenses and are thus capable of providing a wider range of financial advice and financial services. On a different note, Wall Street and stockbrokers have often been depicted in the popular media, in movies such as Wall Street with actor Charlie Sheen and the sequel Wall Street: Money Never Sleeps.