The difference between banks and brokers
1. The business focus is different: banking companies are engaged in savings, loans, clearing income and expenses, currency transactions and other financial services. Securities companies engage in securities trading and securities trading agency business;
2. Different definitions: A bank is a financial institution established in accordance with regulations to operate money and credit business, and it is the material for the development of commodity money economy in a certain period of time. Brokerage is a company specializing in securities business, and it is the direct middleman between users and stock exchanges.
3. Different product positioning: the target market of banks is the core of the money market, and the target market of brokers is the capital market;
4. Different sources of profits: the profits of banks mainly come from the difference between deposits and loans, and the profits of brokers mainly come from service fees or commissions in stock trading, securities underwriting, enterprise mergers and acquisitions, and major asset restructuring.
Which brokerage firm should I choose to open a stock account?
1. Choose brokers with large scale and high reputation: there are too many brokers to choose, and generally choose brokers with large scale and high reputation, whose stock trading service level is higher, which is more beneficial to novices;
2. Choose a securities company with low commission rate: stock trading requires commission. If users want to save costs, it is best to choose a securities company with a low commission rate to open an account;
3. Choose a securities company with practical software: All securities companies have a stock trading software, so users can feel it first and compare several companies. If they feel practical, they can choose this securities company to open an account;
4. Choose a broker with a business office nearby: Although it is convenient to open an account by mobile phone, many businesses still need to go through the formalities in the business office, such as opening the Growth Enterprise Market. If there will be brokers around the user's residence, you can also consider opening an account nearby, which will be more convenient to handle business in the future.
This article mainly talks about the difference between brokers and investment banks, and the content is for reference only.