a)What are the functions of a stock broker?
A stock broker is an individual or an organization, who is licensed by the government to trade in stocks/shares and has the right to access the share market. On payment of a small fee, he acts on your behalf in the stock market and carries out your transactions of buying and selling of shares. Besides these, he also provides professional advice in debentures sale/purchase of government bonds, and listed property trusts etc.
b)Full Service Broker (Advisory):
Stock brokers are generally divided in two categories:
- Full Service Brokers
- Discount Brokers
As the name would indicate comprehensive services from trading to financial planning of the clients are provided by a full service broker. Based on your financial aims and objectives, he provides advice on the clients investment portfolio and additions/alterations required in the some from time to time. Since he provides comprehensive services, his charges are a little higher than discount brokers.
c)Selection of a full service broker:
As full service broker will be your vital link for making financial deals, the selection of the same has to be undertaken with great caution and circumspection. You need to assess some of his capabilities in the following fields:- How much he charges for the services he provides and how they compare with others in the market?
- Is his advice and data backed by adequate equity research?
- Does he have access to floats?
- What is the style and pattern of his investment?
- Is his communication system reliable? Does he communicate with his clients on a monthly, weekly or daily basis? Is he printing any newsletter etc?
- What is the frequency of review of your investment portfolio? Will he review it often though, to increase your returns?
d)Discount brokers (Non Advisory):
Discount brokers generally provide limited services of buying and selling your stocks/shares; based on the orders given by you, via telephone and/or internet. Since their services are of a non-advisory nature, their fee is also less vis--vis full service brokers.
e)Selecting a good discount broker:
You need to review the following guidelines before selecting a good discount broker.
- Is he offering any value added services?
- What is the mode of contacting him phone or net?
- Is he charging any amount towards monthly subscription fees?
- Is he offering any discounts for regular traders?
- Is he asking for a special cash management account for trading?
- What does he charge for buying/selling?
- What is his market reputation?
- Is he doing insider trading?
If you are trying your hand at the share market for the first time, you should avail the services of a full service broker, to avoid getting your fingers burnt. For regular traders, discount brokers will suffice.
For more great resources visit http://listofstockbrokers.com where you can also find high growth stocks and penny stocks
Choosing The Right Broker For Your Investment Needs
Choosing a broker is quite important for faring well when it comes to investments. You might be thinking whether you need a broker. Yes, you do if you intend to invest in stocks. Usually brokers work for brokerages and they buy and sell stocks. Depending on the type of investments you intend investing into, you will have to hire a broker.For a sto...
Benefits Of Using A Stock Broker
I should begin this by saying that being a stock broker is expensive. However, if you are new to the world of investing and find the terminology, expenses, fees, and process the least bit confusing it is best to utilize the services of a stock broker that is going to work with you every step of the way and explain the way things work at least for t...
Stock Broker Education
Are you thinking of getting your feet wet as a stockbroker? First, you have to make sure you know what youre getting yourself into. If you simply want to get into the industry because you think that would be the fastest way to earn money, you will not get very far. In fact, you will probably end up frustrated.To be a successful stockbroker, for obv...
Stock Broker Salary
Did you go into the stock market industry as a broker hoping to make a good deal of money? If you did, you might be in for a shock. To start a career as a stockbroker, you first have to go through a grueling set of exams and training.Though you are not required to even have a college degree, having an educational background that deals with the econ...
Stock Broker License
If you are already preparing yourself to be a stockbroker, you know that there is no prior educational background necessary to enter this field. In fact, you do not even need to have a college degree to get into the industry. That is not to say that an extensive knowledge in economics, finance, and business management, and a computer background wou...
How To Become A Stock Broker
If you are interested in the stock market, you may be thinking to yourself, How can I become a stockbroker?There is no educational background needed to get in this industry. The basic qualification you need is an interest in the market. But if the reason for your interest is to simply gain more money, you may end up frustrated. The stock market is ...
Best Online Stock Trading Company
Online stock broker enables investors an easy understanding of the stock market and the right way to avail its best benefits. Just by sitting in your home or office, you can know the latest news about the market. Online stock brokers provide a wide range of investment information and excellent services too. However, it is important to inquire into...
