Introduction to a Stock Broker for Kids and Teens
This video explains the concept of a stock broker in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about stock brokers, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Kindergarten
- Elementary School
- Middle School
- High School
The topics covered are:
- What is a stock broker
- How are full service and discount stockbrokers different
- How do stock brokers help me
- How do I find a stock broker
What is a stock broker?
A stockbroker is a person or a company that buys and sells stocks and other securities like ETFs and mutual funds on behalf of their clients – either institutional or individual investors.
Most stockbrokers work for investment banks or brokerage firms, act as a middleman between the stock exchange and the investors, and charge commission for their services.
There are two types of stockbrokers – full service and discount.
How are full service and discount stockbrokers different?
Full service brokers provide many personalized services to their clients – including portfolio management, investment and tax advice, retirement and estate planning, etc.
Full service brokers usually charge high fees and commissions, and are preferred by high net worth individuals and institutional investors.
On the other hand, discount brokers do a much simpler job – they just execute trades on behalf of their clients.
The vast majority of individual investors use online trading platforms offered by discount brokers, due to much lower fees and commissions.
How do stock brokers help me?
Individuals like you and me cannot easily trade stocks on our own – in order to do that, you or your firm need to be a member of a stock exchange like the New York Stock Exchange (NYSE) or NASDAQ.
So stock brokers act as a middleman between you and the stock exchange, and execute your trades on the stock exchange.
How do I find a stock broker?
Individual investors like you and me should opt for an online broker especially considering the ease of trading and the cost savings offered by them.
Compare multiple discount brokers and go for the one that requires a low minimum investment, charges very little or no commission, and has no ongoing account maintenance fees.
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What is a Stock Broker
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about stockbrokers: What is a stock broker, how are full service and discount stockbrokers different, how do stock brokers help you, how do you find a stock broker, and more. Show notes and transcript at: What is a Stock Broker? A Simple Explanation for Kids, Teens and Beginners Everything you …
