Do you need a broker? The short answer is no, you don't need a broker who lives, gives advice, and charges commissions (although you shouldn't rule that out). However, you do need a brokerage agency, the online store where you buy stocks, bonds, exchange-traded funds (ETFs), and other investments. Why do you need a brokerage agency, but not a broker? Basically, no education or license is required to buy a stock. Becoming a stockbroker, someone who buys and sells on behalf of a customer, is another story.
That requires passing the 7 and 63 series licensing exams. The primary purpose of a broker is to act as a liaison between a buyer and a seller. First of all, that means they have access to real estate sold by other brokers or agents. Basically, your job is to make things a lot easier for you. The best way to explain this is with an example.
Let's say you're planning to buy a home and you have some parameters set in your mind. Under the new rules, potential buyers can now be responsible for paying their agent's commission. Some now question the need for such an agent. A stockbroker can help you with the logistics of making your investments. A mutual fund agent can also help you do the same.
From a regulatory standpoint, brokers are not supposed to act as investment advisors.
