Stock Market Trading Broker
There are only certain avenues available to investors to purchase shares in a company and all of them revolve around a broker. Brokers are people whom have access to the market and handle your orders to buy and sell shares. They are a type of financial intermediary – that is, they help companies sell their shares and investors buy them effectively bringing both parties together and closing the gap. They charge a fee for their service – called a commission – and have a duty to you, as their client to get you the best deal they can.
This may sound crazy, but it’s absolutely true AND extremely important for you to understand. Your broker is there to take your orders and execute your trades. That’s it.
Your broker’s goal is to get you to make as many trades as possible. That’s how he makes his money, on trade commissions and fees. You don’t have to make a trade just because he wants you to. Your job is not to make him money, it’s to make you money.
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