Stockbroker: What is it and what are its functions?

It is a highly cinematic figure, surrounded by myths and urban legends. Executive profiles, finance professionals… But what exactly is a stockbroker, what functions do they perform, and what is their salary?

A man aged between 18 and 44 who invests around €11,000 per year in financial markets, and more than half of those who have tried it continue doing so regularly. Their preferred products? Stocks, funds, and savings or interest-bearing accounts. Cryptocurrencies, deposits, real estate, and government debt also play a role. This is the profile of Spaniards who have entered this field to maximize returns on their assets, according to an XTB study -Savings and Investment Habits in Spain. And who advises, guides, and intermediates between everyday investors and the stock market? This is the key question: the stockbroker, also known as a broker.

What Is a Broker or Stockbroker?

What is a broker? What exactly does this professional do? We are looking at a financial profile that acts as an intermediary between individual investors or companies and the stock market. Their income comes from clients, the amounts invested, and the commissions agreed upon between both parties.

There are three key aspects to understanding what a broker is:

• Financial professionals with extensive knowledge and experience in economics and markets.
• They operate individually or through specialized firms, provided they are authorized by the relevant regulatory authority in each country (the National Securities Market Commission in Spain or the SEC – Securities and Exchange Commission – in the United States).
• The essence of their role is to mediate between individuals or organizations that want to invest and the financial markets.

What Does a Broker Do?

The functions performed by stockbrokers involve a high level of responsibility and must be carried out by professionals who understand both the market and the rules that shape it, including those that are not always written down. So, what does a broker actually do?

1. Advise clients based on their resources and risk tolerance, explaining the pros and cons of different financial products.
2. Manage clients’ investment portfolios.
3. Analyze trends and markets in order to provide informed recommendations.
4. Execute and record orders from clients to carry out the appropriate financial transactions.

Several key aspects make the stockbroker a valuable professional for individuals and companies seeking to maximize returns on their assets:

• Professionals who stay constantly updated on developments in the business and financial world, as well as in the markets, allowing them to anticipate trends and make informed decisions.
• Absolute integrity in dealing with clients. Trust is essential, as clients entrust brokers with significant amounts of money and savings.
• Transparency in operations, with regular reporting so clients can track the performance of their investments.

What Should You Study to Become a Broker?

Without a doubt, the salary of a stockbroker is particularly striking—especially for those who, over time and with experience, earn five-figure salaries that can double or triple the average wage in countries like Spain. This leads many readers to ask: What should you study to become a broker? What training is required to work as a stockbroker?

Knowledge of economics, finance, and business administration is essential. Most people who pursue a career in the stock market have degrees in these areas, such as Economics or Business Administration (ADE). It is also advisable to further develop knowledge and gain experience through master’s degrees or postgraduate programs to build the expertise needed to perform effectively as a broker.

At EAE Barcelona, there are specific programs designed for those interested in this career path. The school’s business education offering includes options such as the Bachelor’s Degree in Business Administration and Business Transformation, which provides a solid foundation, and the Master’s Degree in Finance, which allows for deeper specialization. Both are excellent programs, and the academic team is available to guide students in choosing the best option.

Average Salary of a Stockbroker

At the beginning of this article, we mentioned the many stories and myths surrounding a profession often portrayed in films. Wealth, fame, intense social lives, luxury, and excess… How much do these professionals actually earn?

Leaving cinema aside, the real question is: what is the salary of a stockbroker? In Spain, the average is around €28,800 (source: Glassdoor). However, there are significant differences between junior and senior profiles. According to the same source, salaries can range from €10,000 to €246,000. What does this depend on?

• The experience of the broker
• The size and quality of their client portfolio
• The number of transactions they handle
• Their depth of knowledge in finance, economics, markets, and financial products