We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What are Broker Recommendations?

Mary McMahon
By
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A broker recommendation is an opinion offered by a securities broker to clients who would like assistance with making decisions about which securities to buy, sell, and hold. Some brokers may base such recommendations on their own analysis of companies and market conditions, while others rely on the opinions of analysts who work for their brokerages. The recommendation may reflect the unanimous opinion of the brokerage, or it may come from a specific broker or analyst.

Also known as opinions or ratings, broker recommendations are among the services brokerages offer to their clients. It is usually necessary to be a paying customer to access recommendations. Clients can receive recommendations customized to their accounts, and brokerages also usually release recommendations in newsletters and other publications targeted at their clients.

Different brokerages use varying terminology when they make broker recommendations. The most basic terminology used is buy, hold, and sell. These terms are fairly self explanatory; they mean that the customer should consider buying a security, holding existing shares, or selling existing shares. Brokerages may have additional terms such as a "strong sell" or they may refer to whether or not a security is expected to outperform the market.

To formulate a broker recommendation, an analyst must be familiar with the market in general and the conditions which may impact a specific security. This includes reviewing information about companies to learn more about their projected future, developing financial models, and keeping track of rumors which might be indicators about the future movement of a security. All of this data is pulled together in a report which is designed to accurately assess a security's current and projected value.

Clients are not required to follow a broker recommendation. They may prefer to make their own decisions or may disagree on a given recommendation. People who are not as interested in being involved in investment decisions can consider using a money manger who will make financial decisions on their behalf, using broker recommendations as a guideline for sound investment.

People who do not have access to a broker because they manage their trading themselves can still find broker recommendations. Financial publications sometimes provide recommendation lists which are drawn from the opinions of experienced brokers. Online, people may exchange tips and information with each other and include broker recommendations in these tips when they receive them. Care should be taken when reviewing advice from strangers, however, as people may be attempting to engage in manipulation.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.