Stock Broker or Analyst? Which Do You Need?

When first starting to invest, many people soon learn that it is a difficult thing to do on your own. Seeking the advice and guidance of an experienced professional is always a wise move. But to many new investors, the word stock broker and stock analyst seem one and the same. On the contrary, the two are actually quite different, and you may in fact, need the assistance of both.

If you are not interested in, or lack the confidence to handle the buying and selling of stocks on your own, a stock broker will do that for you. Brokers generally work for brokerage houses and are qualified to buy and sell stocks on the stock exchange. A broker will also be licensed by the proper authorities in order to buy and sell stocks and will also very likely have a background in the finance and economic sector, thus adding further credentials to his or her service. A stock broker makes money from commissions that are charged for their service. Most brokers charge a “per transaction” fee, and may be either a full service broker or a discount broker. Be sure to determine just what services are offered by a broker compared to one another before making your choice. Your own level of investing knowledge is the best indicator of whether you should hire a full service or a discount broker. While some brokers may offer stock analyst services, most will only handle the actual stock market transactions and not give advice on the performance of specific stocks, or what you should buy or sell. That type of assistance would come from a stock analyst.

If you have decided to invest in stocks but have limited knowledge or interest in delving into the workings of the stock market, a good stock analyst is well worth seeking out. Analysts generally have financial backgrounds as a thorough understanding of the market. Drawing from their research into the financial details of companies, they are able to recommend which stocks are the best to buy and or sell based on their current and projected performance. A stock analyst will work with you by providing in depth reports of their findings, to keep you informed of the performance of the stocks you own as well as suggest actions that you should take to achieve the best return on your investments. Keep in mind, that even with the advice of an analyst to guide your decisions; you will still require either a full service or discount broker to do the actual transactions for you.

In conclusion, if you are new to investing, it may be best to work with a stock analyst as well as a full service broker until you are more confident in your knowledge of the market. If you already feel you’re on the next level, it may suit you just fine to use a discount broker only.

Some brokers even offer you the choice of either a fixed spread or a variable one. The cheapest way to trade is with a very reputable market maker who can provide the liquidity you need to trade well.

Has become the global stage to receive the equity investment. Forbes named Warren Buffett the world's richest man. What is he target? He is a businessman. He trade stocks, foreign exchange, options, futures.You can also use the expertise of other trading companies, to become a profitable trader also. Buffett had a profound opportunity to buy the Dow when it was less than 300 dollars, and even a friend's advice. Today, the Dow has risen to 12,000 dollors per share.

A stock analyst can help you to understand the market, he can show you the right way and strategies but you have to implement yourself, then you can do something better in forex trading.

Attempting to trade on the forex market without a broker is like trying to hunt a grizzly bear without a soupspoon. Chances of success are very small and distinct risk you will get hurt pretty badly. In fact choosing the wrong broker may also cause heavy risk, so it is important to even choose a right broker the right way.

If a broker provides good services, recommendation, good forex signals then trader should not compromise with the spreads or commission. Profit is more important than commission or brokerage.