What is the difference between an investment adviser and a stockbroker?

The difference between an investment adviser and a stockbroker is that the former advises people on financial decisions, whereas the latter carries out transactions on their clients’ behalf. An investment adviser is someone who provides financial advice and guidance to their clients, helping them make decisions about investments, such as which stocks, bonds and mutual funds to buy. The investment adviser gives their clients advice and guidance on the best investments to make based on the client’s financial goals. They can also provide other services, such as portfolio management and tax planning. On the other hand, a stockbroker is someone who carries out transactions for their clients, such as buying and selling stocks, bonds and mutual funds. They work like a middleman between their clients and the financial markets. They can provide advice on which stocks and funds to invest in, but their main job is to actually execute the trades on behalf of their clients. In Washington state, both investment advisers and stockbrokers are required to be licensed and to abide by the regulations set by the Securities and Exchange Commission in order to protect consumers from investment fraud. All investment advisers must register with the Washington State Department of Financial Institutions and all stockbrokers must be registered with the Financial Industry Regulatory Authority.

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What is the difference between an investment adviser and a stockbroker?

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