Broker is a person who is needed to help you in selling and purchasing stocks as your registered representative. Finding a perfect broker is a mater of great concern as you cannot rely on a wrong person for such a huge money dealing or what you say stock trade. So it’s a very sensitive decision and you need to think on all aspects while picking up a right broker for you. The problem is, most of the people don’t have any idea about on which basis a broker should be chosen. What are the main qualities that a broker should hold? Always bear in mind that, if the broker is claiming to make your rich over night, he is probably cheating you. He just wants to take your money by hook or by crook.
Secondly, don’t look for too much discount as it can lead to some deception or fraud. Obviously it’s not possible to afford too expensive broker for everyone but what we are suggesting you is, to look for a justified discount.
Meet different brokers, observe their working style, match them with one another and decide which one is better. Choose the one with whom you feel comfortable as you will have to share your personal information with him in future. So the comfort level between you and your broker should be there to discuss all your financial situations and aims at ease.
If you are a beginner in this trade and you don’t have much knowledge about market and economic tactics, then going for a full service broker would be wise decision. The charges of a full service broker are higher than that of a discount broker. Try to learn from your full service broker, how does he deal? How does he search the market and how does he make decisions? Observe him keenly, it would increase your knowledge and would help you for future dealings. If you think you are experienced enough in this field then go for the discount broker. He doesn’t work as a financial advisor for you, all what he does is to carry out the investor’s order.
Always choose an experienced person or a company; never take any risk by hiring a fresh broker. The background and previous record of the broker matters a lot, so do a good research work in this area and go for the one about whom majority holds positive opinion.
One more point is also very important to discuss, that is, availability of your broker. He should have good reputation in terms of availability. Always prefer a broker who is nearby and accessible when you need him. He should be always there for you. Some brokers keep their additional charges hidden so make sure all the additional charges are obvious.
A broker should have a quality to recognize the value of your goals. He should understand what you want and what suits you the best. He should set priorities keeping in mind your main concern and your interest.