Are you looking forward to invest in stocks soon? If yes, then do know for a fact that one of the most important investing decisions that you will end up making is regarding the choice of the stockbroker. There is no dearth of brokerage companies eager to offer services to investors. While some of them have brick and mortar establishments, there are others who just prefer conducting business online. Listed below are a few ways in which you should select a stockbroker.
Tips to select a stockbroker
What are the points that you need to keep in view while you are looking for a stockbroker? Do you want one you can see face to face? Have you looked at an online brokerage? What type of stockbroker would you like? We will discover this in the course of the post.
Determine what you need to trade
Let us tell you that all stockbrokers out there will allow you to deal with shares that include exchange traded funds (ETFs) and investment trusts. There are a few brokers who have extended their product range. So, we, now have stockbrokers who provide transactional services as well. If you want to have all your assets at one place, you may choose stockbrokers who offer both open ended funds and shares. There are brokers who allow you to trade corporate bonds and gilts too. What do you want to trade with? Your choice of the stockbroker is largely going to depend on the answer to this question.
Check the credentials of the platform
You should be prudent enough to select a platform, which is fast, secure and enables you to trade worldwide. The stockbroker must ideally offer you total segregation of assets. As far as its security is concerned, you can conduct your research on the same by checking out the regulatory banking standards governing the broker’s operations.
An effective way to check out the platform’s speed would be to visit its website during different times throughout the peak trading hours. See how fast the site is loading and watch out for technical difficulties, if any- as well.
Check the quality of customer services offered by them
Facing a technical glitch while trading? Want to get in touch with the customer service to get the problem mitigated? If you are forced to wait for 20 to 25 minutes to get help from the support team, then it’s a definite red flag. You need to switch right now. Degiro for example is one of the most talked about online trading platforms today. After the security broker firm launched its online trading platform recently in London, its director, Gijs Nigel said: “All of our progress has culminated in this point, and the UK is a natural next step for us. We’re excited to be launching in Europe’s financial heart and we look forward to liberating UK investors from the hidden costs that have plagued them for so long.”
Are they charging you any rip-off fees?
Please ensure that you are duly educating yourself about the rip-off fees charged by the broker. The rip-off fees refer to the additional compensation to the broker that sold you the fund, at the first place. There are many investors who don’t know how much they are paying in terms of total investment costs. Make sure you are educating yourself about these fees in detail before selecting a broker.
Find out what others are saying about the quality of services offered by the broker
Yes, this is something all investors do. Find out what other investor friends are saying about the quality of services offered by the stockbroker.
The online stockbroker must allow you to open an account easily. You ideally should not be required filling up complicated paperwork in order to initiate trading. Additionally, the platform should offer you access to a wide range of exchanges and financial products worldwide.
