how to get a reliable stock broker
A stockbroker is licensed professional individual working with a brokerage firm or broker-dealer, who buy and sell stocks for both retail and institutional client for a commission, a stockbroker act as a middle man between an investor and a firm, they bring stock sellers and investors together, a stockbroker charge a fee for executing buy or sell orders of stock submitted by an investor.
Stockbroker act as buyer to find another stockbroker who as seller on behalf of another investor. They are responsible for bringing the buyers and sellers together, they are licensed to carry out transaction on the stock exchange floor, individual investors are not allowed to trade stock on the floor of the exchange.
Therefore selecting a reliable stockbroker is key to your success as an investor in the stock business, there are things to consider before choosing your stockbroker because there are fraudulent brokers and not all regulated brokers are reliable. There are certain criteria in choosing a reliable stockbroker below are some: see factorss affecting stock prices
· Ensure that the stockbroker you are willing to ask for his service is a regulated one, you can do that by checking the website of the stock exchange of the country of your choice or you contact a successful stock investor you know and trust, this two should be able to let you get a licensed stockbroker. After getting the regulated broker ensures that his /her clients are getting positive result from him, any negative feedback is a warning signal.
· Be close to your stock broker: you must be close to your broker to succeed in your investment so that you develop more than business relationship, let him be close to you should any need arises. A broker that is far away from you is not reliable because you need him before you can make any transaction should the need arises. details on BP share
· He must be trustworthy: avoid fraudulent broker who can clone your share certificates, duplicate you CSCS account and sell your shares without your knowledge, but getting a trustworthy broker can prevent this. You need to conduct adequate research.
· Your broker must be capable and informed: your broker must be combat ready; he must be able to execute your shares when due, must be conversant with the market, any dull or lazy broker dictate failure
· He must have your interest in mind: let him have your success at heart, you could turn this by giving him more than the normal fee.
Your stockbroker is responsible for executing your orders for both buying and selling of stocks, you pay him 2.73% out of the 4.06% of the service fee. Your broker must be able to tell you when to buy or sell your shares when he is requested though it is no compulsory.
Verification of share certificates, recovery of your lost certificate and stale, dividends warrant and lastly updating you with important information pertaining your shares. see investing in Gold
Stockbroker do conduct researches to alert their client of when due to sell their shares, if a stockbroker predict a drastic fall in stock price you should tell his client to quickly dump the stock to save money. In other way a stockbroker may advice his client to retain his stock if he believes the price will go up.