Difference between stockbrokers and traders

[DavidCarpentier]

Hi guys,

I am a beginner to this, could you please explain to me the difference between being a stockbroker and a trader?

From what I understand, a stockbroker works for wealthy individuals who will ring them up and say ''sell this'' or ''buy that''. The stockbroker is employed by a trading house to work on behalf of its clients.

The trader might work for the trading house or investment bank itself. They will buy and sell with the bank's money to try and make the bank a profit. They might also trade on behalf of clients but the decisions on what to buy are made by the traders themselves using their own judgement.

Is this correct?

And also, how does proprietary trading and flow trading differ and how does prop/flow trading fit into stockbroking/trading?

Thanks

Dave

 

[A Dashing Blade]

Pretty much hit the nail on the head.
A stockbroker is a salesman.

 

[Jack o'Clubs]

The broker might also work for a big IB too though, as their clients will include mutual fund and hedge fund managers (ie institutional cash), not just wealthy individuals.

 

[damianoakley]

Hi guys,

I am a beginner to this, could you please explain to me the difference between being a stockbroker and a trader?

From what I understand, a stockbroker works for wealthy individuals who will ring them up and say ''sell this'' or ''buy that''. The stockbroker is employed by a trading house to work on behalf of its clients.

The trader might work for the trading house or investment bank itself. They will buy and sell with the bank's money to try and make the bank a profit. They might also trade on behalf of clients but the decisions on what to buy are made by the traders themselves using their own judgement.

Is this correct?

And also, how does proprietary trading and flow trading differ and how does prop/flow trading fit into stockbroking/trading?

Thanks

Dave

A Stockbroker usually works for a boss in an office Mon to Fri, and is tied to his desk and the daily company grind.

A Professional Trader can (but doesn't always) work for himself trading his own account. He has no boss, works his own hours, and uses his trading to gain personal and financial freedom.


Well, that's my ideal world definition anyway - after all, trading can be bloody hard work !


Thanks

Damian