Stock Markets Exposed
Online Trading Vs. Stock Broking?
Hello everyone, I want to be a stock broker but current trends of online trading makes me rethink this decision. Will 'stock broker-ing' as a job become obsolete due to rising numbers of cheap, discounted methods of trading such as online trading or not? Thank you for any insights you can give. I really appreciate it.
Public Comments
- Floor brokers are becoming obsolete (its starting to all go electonic and if you've noticed Wall Street is minus something like 800-1000 floor traders within the last couple of years) but there will ALWAYS be a need to have financial advisors to direct the undeducated masses.
- I don't think stock brokers will ever become obsolete. There are always going to be people who prefer to have a broker handle their stocks. Also, even the brokers who have online sites, still have brokers in the office. The job description might change a little. The company I do all my trading through is an internet company - yet they still have offices, and even though the account was set up on line they still assign a stock broker to the account. So if I had questions - that's who I would go too. It might be a little harder to get your first clients, as you need to be able to show potential clients how you can benefit them, and with a lot of people opting to invest for themselves you first have to overcome that. Personally, I think the majority of people don't want to take the time to learn investing and would rather have someone they can trust take care of their investments. A simple sample from where I work - out of 20 people who invest I am one of two people who invest on our own. The other 18 use brokers, and they have no desire to invest for themselves.
- Stock brokers (or whatever the latest term is - wealth managers, financial planners, account executives, etc.) are asset gatherers and sales people. They must constantly produce and grow to keep their jobs. It's a very competitive field and you must put in long hours but if you manage to build a book in 5-10 years it becomes your asset you can live off of and take with you wherever you go. Trading (particularly trading other people's money) is also very competitive and you must produce profits to keep your job but it's a skill that will last you a lifetime if you learn how to do it. I'd say if you like to deal with people, sell, and be a corporate man - go for stock brokering. If you are a stubborn loner and a corporate misfit - go for trading.
- I hope so.
