What is a stockbroker?

A definition of a broker-dealer is the entity or individual recognized by the stock exchange to carry out the operations of purchase and sale of transferable securities. The aforementioned agent will act on the exchange always thinking of the client's interests.

To understand this term a little better, we must stop at the explanation of the stock market, which is the market where those interested in buying and selling bonds, actions, etc have the figure of the broker the stockbroker, who is in charge of representing them.

Stock broker characteristics

The concept of stockbroker refers above all to an intermediary between the mercado and the buyer. Their work is essential since it would be very complicated for there to be an interaction between buyer and seller. In addition, it would have the investment advice of a specialized person.

This agent must carry out his work with truthfulness, loyalty, responsibility and always attending to the interests of the client, who will have to pay a commission in exchange, that is, a percentage of the investment that has been made. By earning the trust of customers and respect within the stock market, you can acquire the status of recognized agent.

Other terms that are used to refer to brokers are broker or stockbroker.

Conditions to be a stockbroker

There are a series of requirements to be able to act as a stockbroker:

  • In the case of an individual, they must be of legal age, while in the case of entities, the requirement is that they have more than one year from its constitution.
  • Have shares in the stock market.
  • Being associated with the stock market.
  • Have the capacity to carry out this work.
  • It must be financially sound in order to support its own operations and those of its clients.

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