What Is A Stockbroker?

‘Stockbroker’ is a term many people have likely heard of, despite not necessarily being directly involved with the financial industry - but what is it? This blog aims to answer the question ‘what is a stockbroker?’ whilst offering a brief introduction to the stockbroking services we offer here at Hedley and Co.

What Is A Stockbroker?

At its core, a stockbroker is a financial professional who takes care of transactions within stocks and shares on behalf of their clients. The clue really is in the name - a broker who works with stocks.

Whether they work through a stock exchange or over the counter, stockbrokers tend to work with retail and institutional clients in buying and selling stocks and other securities. The term ‘stockbroker’ tends to act as an umbrella title for other roles within the financial sector such as Registered Representative or Investment Advisor.

The main duty of a stockbroker is to help manage their client’s wealth portfolios. By offering recommendations and analysing fluctuations and changes in the stock market, stockbrokers can advise clients on where best to invest their finances or offer access to the appropriate platforms for them to do so.

What Are The Different Types Of Stockbrokers? 

As we have discussed, the word ‘stockbroker’ is often used as the umbrella term to describe a number of roles. Different types of stockbrokers often handle different types of traders or investors, depending on their needs.

• Full-Service Stockbroker 

These stockbrokers deliver personalised information to full-service clients - usually meaning clients they have been individually licensed to. Full-Service Stockbrokers offer a personal service to their clients and deliver research on investment in line with their personal financial situations.

• Discount Stockbroker 

The role of a Discount Stockbroker is to follow up on orders. These stockbrokers tend not to offer research or analysis results to their clients. These stockbrokers tend to offer services that are similar to Full-Service Stockbrokers but on a smaller commission. This type of service tends to serve active day traders best.

• Online Stockbroker 

These stockbrokers take on the smallest commission - usually operating on a per-stock pricing system. Online Stockbrokers provide investment news, charts and stock selections through direct-access platforms.

Why Is A Stockbroker Important? 

The world of stocks and shares is an uncertain landscape to navigate. Whether you are an individual, a trader, a business owner or an investor, it is useful to have access to somebody who has up-to-date knowledge of the ever-changing stock market.

A stockbroker can play a vital role when it comes to mitigating your finances and exploring your investment options.

Not only can a stockbroker offer you knowledgeable advice but one of the main reasons clients find a stockbroker so important is record keeping. Keeping on top of trade confirmations, monthly statements, year-end tax reporting statements and any account activity will help you stay on top of your finances.

Stockbroking At Hedley And Co. 

At Hedley and Co, we pride ourselves on offering a stockbroking service that is swift and efficient. Designed to enable experienced investors who are comfortable managing their portfolios to gain access and knowledge in stocks and shares, our stockbroking service offers execution-only dealing.

This model is appropriate for those clients who are wanting to take advantage of our dealers' knowledge of markets, as well as gain access to a variety of trading platforms. Those who prioritise maintaining full independence and responsibility for their trades are the clients who will benefit the most from execution-only dealing.

Execution-only dealing may be related to the role of a Discount Stockbroker due to it not requiring financial advice from the brokers. That being said, execution-only dealing still requires a high level of service from the Hedley and Co team.

We pride ourselves on offering a service in stockbroking that not only meets but surpasses our clients’ expectations of what an execution-only dealer offers.

One of the key attributes that make us attractive as execution-only dealers is that our clients only pay for trades we have executed as opposed to any additional management fees. This is why we work with those who are capable of managing their own wealth portfolios.

Get In Touch 

At Hedley and Co, we offer a free, no-obligation consultation in which we work with you to discuss potential investment options that work for you.

If you would like to speak to a highly trained member of our stockbroking team and find out how we can help shape your financial future, please don’t hesitate to get in touch.

You can call us today on 01254 699333 or 01772 887880.

Alternatively, you can contact us via email at info@hedleyandco.co.uk or fill in our contact form and a member of the team will get back to you.

Please note when investing in stocks and shares there is a risk of loss to capital and income. The value of investments can fall as well as rise and you may get back less than you initially invested. Past performance is not an indication of future performance. 

Hedley & Co Stockbrokers & Wealth Managers is a trading name of Hedley & Company Stockbrokers Ltd who are Members of the London Stock Exchange and Authorised and Regulated by the Financial Conduct Authority under reference 471207 VAT No 741 1173 68

Registered in England and Wales, company no. 06355300. Our registered office is 19 Trident Park, Blackburn, BB1 3NU.