Investments and financial planning can be tiresome and confusing. Many people are not aware of the difference between a stockbroker and a financial advisor. They believe that these two people perform the same function. This is not the case, although the two are closely related.
A stockbroker is an agent who follows the buy and sell orders of an investor. At times the stockbroker may be asked advice as to what stocks should be bought or sold.
A financial advisor may provide many services, including stockbrokerage advice. Financial advisors may assist with retirement planning, investment advice, tax preparation or estate planning. Financial planners, stock brokers and insurance agents can all fall under this generic term.
Stockbroker vs Financial advisor
What is the difference between a stockbroker and a financial advisor? The answer is simple. ‘Financial advisor’ is an umbrella term that encompasses the stock broker, among other types of financial planners and providers of financial services. All stockbrokers are financial advisors, but not all financial advisors are stockbrokers.