| what is the difference between a financial advisor and a stock broker?

what is the difference between a financial advisor and a stock broker?

Simon R asked:


Im looking into investing some of my money into the stock market I have read rich dad poor dad for inspiration and have done some research on some basics about the subject. once in awhile I watch Jim crammer’s mad money show and I plan on buying his books as well. I dont have much money to begin (less then 1K) but i hope it can go far with some more information

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4 Responses to “what is the difference between a financial advisor and a stock broker?”

  1. Scott O on May 23rd, 2009 4:26 am

    A financial planner should be well versed on various types of investments and strategies that will work well with your time/age. A stock broker is merely a salesman/broker. Stick with the financial advisor or CFA. You may even want to look up a few financial planners or CFP’s. Mine is very good.

  2. Richard D on May 26th, 2009 7:13 am

    A financial adviser or planner analyses your current financial situation, your future financial goals, and your attitude to risk. Based on this information, the financial adviser or planner will devise a financial strategy to enable you to meet your financial goals. In doing this, the adviser/planner will consider all the different investment vehicles available, the level of risk involved, the potential returns, and the potential tax implications. The adviser provides an ‘all service’ overview and strategy based on an analysis of client needs and goals.

    A stockbroker on the other hand only deals in stocks and share market trading. While a stockbroker could provide advice on which stocks you should invest in, they would generally not take into account your financial needs and goals.

    An adviser provides advice on how your money should be invested, while a stockbroker provides a service enabling the purchase or sale of stocks on the stock exchange.

    Cheers

  3. jeff410 on May 27th, 2009 3:50 pm

    Stock brokers only sell stocks and bonds and other financial products. They have no fiduciary responsibility to act in your best interest. Financial advisors offer advice baed on your specific situation. There is a contract between you and them and the advisor has a fiduciary responsibility to act in your best interest.

  4. ccwoods88 on May 29th, 2009 1:28 am

    they are all the same! don’t listen to the B.S. from others. Financial Advisor is a term that companies like Smith Barney, Morgan Stanley, UBS and others use to get away from the term stock broker. Now, Financial Planner is different. Regardless, use someone you TRUST that is the most important factor!!