CHOOSING A
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STOCKBROKER LEARNING INVESTMENT PERSONAL FINANCE GUIDE IDEAS FREE EDUCATION ARTICLE
Advice
on choosing a stock broker that is right for you.
WHICH STOCK BROKER SHOULD I CHOOSE?
Investing
in the stock market is a very simple thing to some. You buy
an investment like you buy a product at a shop.
So why is it important to choose a stockbroker that
is right for you?
A
stockbroker is the equivalent of a personal shopping
assistant. They know your preferences, your likes,
your dislikes, your favored asset classes, your risk
profile and they make judgments based on that information.
A stockbroker has to work with your goals in mind.
Knowing this, this is how you should find a good stockbroker.
CHOOSING
A STOCK BROKER
You are the client
Stockbrokers
are service providers. They are in business
to make you wealthy. Some stockbrokers
feel that their business is to buy stocks
and helping you make money is just incidental.
Whatever a stockbroker says to you,
always remember you are the client.
It is your money and you make the final
decisions. If you feel uncomfortable
about any investment proposition, tell
your broker and they will respect your
decision. If they go ahead and go against
you, then you definitely have the wrong
stockbroker.
Make sure they have
deal access
One
of the main reasons to go with a stockbroker
is that they trade in heavy volumes and this
entitles them to allocations of special issues,
convertible notes and IPOs that you ordinarily
would not have access to. This is important
as they are opportunities that offer real
value. Through a stockbroker you can get massively
undervalued IPO stock or get high earning
notes that you would not be able get through
an online trading platform.
They know the why's not just the what's
When
you are at a barbeque and your friend tells
you of a hot stock tip, the important information
is not the what, it is the why. Ask yourself
- "Why is this tip worthy of my hard
earned money?" A good stockbroker will
make decisions based on your profile and then
choose a stock. They should be able to explain
to you in simple terms why they think that
stock is a good choice for you. If they cannot
explain their actions, then drop them. As
an example, just to say a stock is undervalued
is insufficient, they also have to tell you
what the outlook is and how they have come
to that conclusion.
You
can make investments yourself. It is much
cheaper to invest in stock yourself. But a
full service stockbroker can make a difference
as you have access to knowledge, experience
and investment opportunities you would not
usually have access to.
For teaching and learning about investing:
Teaching Investing Lessons Teach and learn basic investing and financial concepts, including stocks, the stock market, interest, income statements. Lessons, lesson plans, and worksheets.
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Investing
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Finding a Broker for Investing in Stocks and Mutual Funds
Advice
on choosing a stock broker that is right for you.
To teach and learn more money skills, personal finance, and money management, please go to the