Stockbroking is a service which gives retail and institutional investors the opportunity to trade shares.
Stockbrokers will trade shares both on exchange and over-the-counter, dependent on where they can find the best price and liquidity. Typically, a stockbroking firm will charge commission on the trades it makes on a client’s behalf, or a fee for retaining its services.
There are several different services a stockbroker can provide:
- Execution-only stockbrokers will complete orders on your behalf, but do not offer any advice
- Advisory stockbrokers will offer advice on where to trade, but only trade on orders submitted by you
- Discretionary stockbrokers will trade on your behalf, executing trades without your input