A generation ago, a full service stockbroker was a guaranteed lucrative profession. The stockbroker was the gatekeeper to the general public for individual stock or bond sale or purchases. Commissions would be a percentage on the total value of the trade and could run to thousands on a large sized trade.
Flash forward to the present, where online trading is the preferred platform for most people who manage their own investments and deep discount brokers, such as TD Ameritrade and Charles Schwab, have cut commission rates to flat fee levels with account maintenance and order taking services, but without research, portfolio management, and calls with tips. Full service brokers still exist, but serve a very small, select group of high net worth clients who don’t have the time and patience to manage their own portfolios.
Thanks to lowered high school and exam standards, a college education is no longer considered what it used to be. The same can be said for a FINRA SIE or a Series 7 license.
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Finance: What is a Broker-Dealer?16 Views
Finance a la shmoop.. what is a broker-dealer? It's one of [Homeless guys holding help signs]
these guys who's making less than minimum wage right no that'd be a broke
dealer and you won't find too many of them in Lake Tahoe but yeah a broker is [Man talking about broker-dealers in Lake Tahoe]
just someone who takes a commission for selling stuff they live wherever there
are transactions in cars, boats, planes, homes and securities like stocks and
bonds so yeah it's a broker - dealer sort of like a writer-director
sexual deviant in Hollywood... Key takeaway here the broker dealer brokers
securities ie they take a commission and they deal in securities like they carry [People playing blackjack]
their own inventory of ten million shares of Amazon this week's selling
them for twelve hundred ninety dollars and 32 cents a share and buying them for
twelve hundred eighty eight dollars seventy nine cents a share making a
spread of...
equals a dollar fifty-three a share the dealer makes a spread of a buck fifty [Dealer and market transferring cash and stock]
three every time she trades a share of the Walmart killing behemoth yeah it's
sort of a Goliath slaying Goliath story there that Amazon Walmart thing we're
watching it so think about broker-dealer making money on both sides of the trades
that's the way to go if you're going to Wall Street make money no matter what [Man walking on Wall Street]
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