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· Posted on
February 21, 2024

What’s a stockbroker? And do I need one?

When you think of stockbrokers…you probably think of Wolf of Wall Street. But that ain't it anymore.

What's the key learning?

  • A stockbroker is someone who buys and sells stocks, at the direction of their clients
  • But come the 21st century, this full-service stockbroker model is kinda out the door. Instead, we’ve also got online ‘brokerage’ platforms where you can manage the process yourself
  • Online brokers are platforms (or even apps) that allow you to place buy and sell orders.

When you think of stockbrokers…you probably think of Wolf of Wall Street. Ya know, sweaty, shady men yelling at screens ticking with new share prices. 

But that ain’t it…anymore.

So, what does a stockbroker actually do?

A stockbroker is someone who buys and sells stocks, at the direction of their clients.

To do this, they gotta know stuff like: 

  • Where to source information on different stocks
  • Providing advice on current and future market conditions
  • Buying and selling stocks on behalf of clients 

But come the 21st century, this full-service stockbroker model is kinda out the door - especially when you’re making smaller investments (100 bucks here, 1,000 bucks there). Instead, we’ve also got online ‘brokerage’ platforms where you can manage the process yourself.

What’s an online broker?

Online brokers are platforms (or even apps) that allow you to place buy and sell orders. You pick what shares you wanna invest in, and they do the hard yards for you. No more Wolf of Wall Street brokers with slick-back hair.

With an online broker comes added flexibility - you get to pick when you buy or sell. But since they’re not actually giving you any advice on which shares are hot RN, online brokers are relatively inexpensive.

Some broker platforms, like Stockspot, offer pre-mixed funds. You take a quick quiz to determine your risk profile, and then you can invest in a managed fund. AKA, a fund that’s managed by the platform which invests in a whole bunch of different stocks across Aussie shares, cash, gold, emerging markets…you name it.

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