Should a stock broker give you financial advice over the phone?

I recently received a call from a stock broker asking me to give him advice over the phone. I told him that's ridiculous. And no, it's not because I'm a nerd and don't want to talk on the phone (which I am). It's because you shouldn't be giving out advice to someone over the phone.

See how this stock broker screwed up what would be an easy sale? Let me explain why you should never give financial advice over the phone.

A financial advisor is someone whose profession it is to give advice.

A stock broker is a salesperson who buys and sells stock for their clients. They are not financial advisors, although they sometimes use that title. A financial advisor is someone whose profession it is to give advice. A stock broker may have some training in finance and investing, but it's not their primary focus.

Many people confuse the two and are surprised when they find out that they've been talking with a broker instead of an advisor. Stock brokers are only required to give general investment advice. They don't have to do any background research on your situation before giving you advice on what stocks might be good buys or when to sell them.

They don't have to check if you're receiving enough dividends from your investments to make up for fees charged by mutual funds or other products your broker recommends. In fact, most brokers won't even discuss fees until after they've sold you something (and often not until after you've already paid them).

If you're looking for someone who can give personalized financial advice based on your situation and goals, look for a registered investment advisor (RIA) or certified financial planner (CFP).

Financial advisors need to have special qualifications and certifications to be able to do this.

Should a stock broker give you financial advice over the phone? The answer depends on who is doing the talking. If you are calling your stockbroker's office, and they are giving you investment advice, then they have to be licensed as an investment advisor. However, if you are talking to an employee of a brokerage firm who works in the call center, then they are not giving you personal advice and don't need any special qualifications or licenses.

Financial advisors need to have special qualifications and certifications to be able to do this. They also need to be registered with their state's securities regulator so that they can accept commissions for their services (as opposed to being paid through salary or fees). Many states also require that financial advisors take continuing education classes every year or two years in order to keep their licenses up-to-date with new laws and regulations.

A stock broker is someone who facilitates transactions between a buyer and seller.

They can give you advice, but they can't give you financial advice. A stock broker is someone who facilitates transactions between a buyer and seller. They don't make decisions for you, they just help you find one. Financial advisors are different than stock brokers because they give advice that affects your overall financial situation.

They're usually paid as a percentage of total assets under management (AUM). For example, if your financial advisor manages $100 million in assets, they might charge 1% per year (that's $1 million). If you have $10 million under management with them, their fee would be $100k per year. Stock brokers don't charge an AUM fee like financial advisors do, so why would they want to talk to you? Well...if you're looking to buy some stock in a company and want to know more about the company before making an investment decision, then the broker can help...but only up to a point.

For example: If I call my broker and say "Hey! What do you think about XYZ Inc?" He'll probably answer with something like "XYZ Inc? It's trading at $50 a share right now.

They do not need to be certified to trade stocks but they do need to be licensed.

Stock brokers do not need to be certified to trade stocks but they do need to be licensed. Most states require stock brokers to pass an exam and have at least a high school education. Most also require brokers to be registered with the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).

The SEC is responsible for overseeing the entire financial industry while FINRA is an independent agency that regulates member firms, which include brokers, traders, and exchanges. Stock Brokers Can Give Financial Advice Over the Phone Stock brokers can give financial advice over the phone if they are licensed by FINRA or state regulators.

They must also meet certain educational requirements set by their state securities commissioner or FINRA. If your broker does not meet these requirements, you should not work with them because they may not be qualified to give you advice on investments or other financial matters.

Stock brokers are not licensed or qualified to give financial advice.

Are stock brokers supposed to give financial advice? The short answer is no. Stock brokers are not licensed or qualified to give financial advice. They have been known to sell products that are not in their clients’ best interest, but they are not required to do so by law. Stock brokers can sell products that they believe will bring them the most commission, even if those products are not good for the customer.

In fact, there is nothing wrong with this practice. A broker can sell you a product that earns them more money because it is right for you. What should I expect from a stock broker? You should expect a stock broker not only to sell you products that will make them money, but also to provide unbiased advice when they recommend a product that will not earn them any commission.

This is where many brokers fall short, as they only care about making sales and earning commissions rather than helping their clients achieve their goals.

If you are looking for investment advice, you should also consult a legal advisor and/or a tax professional before making any decisions.

The answer to this question depends on who you are and what your needs are. If you are looking for a stock broker or financial advisor, you should ask several questions before making any decisions about which one to choose. You can usually find information about the qualifications of the brokers on their websites and in the fine print of their advertisements.

Look for brokers who have been in business for at least two years and have a good track record of helping clients reach their financial goals. Once you've narrowed down your choices, call each one and ask some questions. Do they charge commissions? Do they offer free consultations? What types of investments do they specialize in? Are they willing to meet with you in person or talk with you over the phone? Once you've made your choice, take some time to talk with that person before making an appointment or providing any personal information — especially if it's an initial consultation.

If possible, bring a friend or family member along for support during this conversation. Make sure that any advice given is clearly explained so that you understand what's being recommended and why it's being recommended that way.

In a nutshell

It is unreasonable for a stock broker to give you financial advice without seeing your whole financial picture. Regardless of what he may claim, it is impossible for a stock broker to suggest a savvy investment strategy without seeing all of your information. Stocks are too volatile and risky, and the stock market is unpredictable enough as it is.

Any informed investor knows that you shouldn't commit your money to stocks unless you can afford to lose them.