The fact of the matter is that people who are in need of financial brokers are those who are interested in investing but do not know how to go about doing it themselves or those who have the financial wherewithal but not the time or those have no clue how to find a mortgage broker. The broker serves as the intermediary between the buyer and the seller.
One has to go broker shopping and start somewhere. None of us wants to go broke; that’s for sure. So, looking for a financial broker pretty much boils down to looking for a broker to keep you financially sound.
- Ask friends. That’s something we mostly do. There are friends who share similar interest as us. Approach them for advice or for the name or agency they deal with. How have their experience been? If they have made changes, ask for the same and also be aware of the reason.
- Here, we are referring to the regular broker. Someone who will take care of the overall portfolio of stocks. There are full-service brokers and discount brokers. If you have the wallet-space for a full-service broker, they will do much of the leg-work for you. Individualized and personalized service costs more but also offers you the peace of mind, if you have invested time in doing your bit of research well.
- Those who are young can start with a discount broker. In the early days, you may not be well associated with the rules of the game and also how it works. But the fact that you have decided to start is a good sign. Before you begin, first know what kind of investor you are, what’s your personal investment style. Are you conservative, aggressive? It’s your money, and you have every right to feel the way you do. And most certainly, the broker you choose should understand this.
- Capital appreciation or wealth protection, what is the goal of your investment? Let the broker know so that he can make a wise decision based on the above.
- Ask about the fees. There are several kinds of charges. Those interested in a large volume of trades (executed over a short span of time for quick gains) will want to look for brokers who charge low execution fees. Others with a buy-and-hold strategy will want to avoid monthly fees. In the latter case, he can choose a broker who charges a slightly higher trade commission.
Those who find themselves wedged between the two, other factors will come into play when choosing a broker.
Brokers can be either a person or an online trading broker. If it is an individual, you will want to know if he is acting in your best interest.
He will call the client twice each year to understand if there are any changes in the strategy to make, to enquire after the client in both good times and bad. He will enquire about the changes in your income to understand how the current portfolio can be churned to suit your new income.