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.
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