There are many different types of financial service providers to help you invest your money. Every financial service provider goes through a rigid educational process to learn how to help their clients to invest their money. There are three basic types of financial service providers.
Stock brokers buy or sell securities for their customers. The purpose of their knowledge and experience in the stock market is to help their clients invest wisely and make money. Keep in mind that stock brokers make a lot of their money through commissions and have no responsibility to impose their interests you. However, to make money for themselves, it is important to make money for you. Therefore, a stock broker to the client's interest at heart.
Investment advisers offer simple advice on effects. Advisers will manage an investment portfolio for their customers and working with stock brokerage firms to buy and sell the decision. Investment advisors, unlike stock brokers, a fiduciary responsibility to their client's interests ahead of their own. You have the option of hiring a financial adviser with discretion that allows the Advisor to trade for you without your permission or you can use a financial adviser that will not act without your permission.
A financial planner is a financial services provider that his or her client plan their long-term financial goals helps. Financial planners have knowledge of various financial products to their customers. These include estate and tax planning, retirement savings, debt control and insurance requirements. A financial planner is there to provide the customer with a complete financial plan of immediate income generation to the planning for the long-term future. Financial planners have no fiduciary responsibility to your interest for their own. However, a financial planner depends on a good reputation and client recommendations to make a living.
A financial services provider is hired to help their client with financial planning. The kind of financial services company hires you depends on the type of financial services you want. For the long term planning of a financial planner is your best option. If you know very little about the stock market, but would like to invest than a investment advisor works best.