Choosing a broker
In simple a broker is a middle man between you and your stock.
Proving your self as intelligent, you already have prepared budget, saved money and now you want to invest it.
But you don’t know about how to invest?
You have to first decide to hire a broker who handles your investment. The question which disturbs your mind is-how to choose a broker?
Choosing a broker depends on the type of investment you are planning for.
Broker is a person who buys and sells the stocks in the stock exchange. They work for brokerage.
If you are interested in dealing in stock market then you must need a broker.
Brokers are legally permitted by the government to buy and sell the stocks. They are license holder. To obtain the license they have to pass two difficult stages. To get the designation of broker a person should have finance background along with degree.
While hiring a stock broker you should have a clear cut and detail knowledge regarding the difference between a broker and a stock market analyst.
A stock market analyst, analyze the stock in which you are investing and interested.The work of a stock market analyst is to predict, analyze and to guide you about the performance of stock.
But a stock broker only work according to your instruction regarding buying and selling of the stock, they never analyze the stock in which you are investing.
The earning of a broker is commission on sale. When you hire a broker they already set the percentage of commission he/she will charge on per transition.
Repudiated broker charges are quite high. Before hiring you must gain full knowledge about brokers.
Generally there are two kinds of broker
• full service broker
• Discount broker.
Full service broker is much better than a discount broker. They will advice you time to time, inform about investment and are paid in commission.
Discount only do as per your instruction, no advice or any other service provided by him.
If you are the first hand investor then you should go for full service broker, they will guide you in each step that will help you in investing your money on gainful stock. And if you are an old player in the field of stock market then you should hire a discount broker.
Related posts: