Great tips on what to look in stock broker

Thursday, April 23, 2009

Great tips on what to look in stock broker

There are hundreds of websites that offer tips on what you should look for in your stock broker, still, you commit mistakes several times.

The reason could be any, you might have read those pesky tips in a hurry, or you never gave importance to those tips.

Most of you believe that you know too much of the stock procedures and do not even bother to function properly. It could also be that you never came across some great tips.

What exactly should you look for in your stock broker?

Ask few questions to yourself? Do you consider trading in shares only, or do you consider investing in mutual funds, as well? What is your investment risk taking capacity? You also need to add basic information about stocks before you decide to invest.

If you do not have a minimal understanding of what stocks are then you would be taken for a ride by your stock broker, therefore, begin by learning few finer points of the stock market and then look out for a stock broker.

Here are some fantastic tips, which would give you some idea about choosing the right stock broker:

• Never run after those brokers who have a weak legal status. They may be in the midst of a legal wrangle. Avoid those and try to seek advice from your friends and relatives about a clean, stock broker and choose one among them.

• Make sure you visit the stock broker’s office, and take a look. If the office has multiple phone lines, and sufficient staff, you could opt for those brokers. You would be guaranteed a reliable, attentive service.

• Check brokerage rates of other firms and compare the prices, decide on the best option available.

• The stock broker should not stick around with one stock exchange. Make sure your stock broker is registered with all the stock trading unit available in your country. For instance, if you stay in India, then your agent should be an active member of BSE and NSE.

• If you prefer online transactions, make sure your brokerage firm uses encryption technology. Encryption prevents hacking of your accounts.

Always remember to follow these fantastic tips before you decide to choose a stock broker for yourself.


kanha said...

Good work buddy.
Keep it up. I would like to read it regularly, make it update timely

Finance Magazine said...

I am happy that you did like my tips. Certainly, I would update and keep things in order.

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