What does a Stock Trader do?

Answer:
While the terms stock trader and stock broker are similar,

they have different meanings. There are several different types of stock traders including the casual individual stock trader who buys and sells stocks using a stock broker, day traders, and professional and floor traders.

A casual stock trader is a person who is trying to build their portfolio. They may use an online brokerage account in order to do so or they may use a full service stock broker.

Professional stock traders can include financial advisors who buy and sell stocks on their customers’ behalf. A floor trader buys and sells stocks on the exchange floor. A floor trader is also a member of a particular stock exchange and executes orders on the exchange floor into his or her account. In order to become a professional trader or floor trader, certain licensing exams must be passed just as a stock broker must pass licensing exams.

Day traders are either individuals or firms who specialize in trading stocks within the same day. In the past, day traders were largely the realm of professional investors and financial firms but thanks to the technology and changing legislation, many casual stock investors are day traders.


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