Stock Broker or Stock Analyst – What's the Difference?

Depending on the type of investment you intend to invest, you may need to hire a broker to handle your investment. Brokers work for brokers and have the ability to buy and sell stocks on stock exchanges. You may be wondering if you really need a broker. If you intend to buy or sell stocks on the exchange, the answer is yes, you must have a broker.

Stockbrokers are qualified and regulated professionals who represent investors in the trading of stocks and other securities through market makers. In order to become a US stockbroker, a person must pass the exams, such as the General Securities Representative exam, also known as the "Series 7 exam". In addition, most brokers have a business or financial background with a bachelor or master's degree.

Differentiating brokers and analysts is important. Stock analysts basically analyze the stock market, predict what it will do or not do, and predict the performance of specific stocks. Keep in mind that some brokers are also analysts, and vice versa.