Choosing a Broker
You may need to employ a broker to handle your investments depending on what type of investing you are looking to do. The reason for this is brokers are able to buy and sell stocks on the stock exchange. The question many ask, is do I really need a Broker to handle my investments. The answer is YES. If you are planning to buy or sell any stocks you must have a broker
Stockbrokers are highly qualified and are required to pass two tests in order to gain their license as a stockbroker. They are also usually required to have some sort of background in finance or business, and have a Bachelors or Masters Degree.
You must realise that there is a difference between Stockbrokers and Stock Market Analysts. A stock market analyst literally analyses the stock market, and their job is to predict how certain stocks will perform and what different stocks will or will not do. A stock broker is only there to follow your instructions and buy and sell stocks on your behalf.
In most cases stockbrokers earn their money from commissions on sales. When you instruct your broker to buy or sell a stock, they earn a set percentage of the transaction. Many brokers charge a flat €per transaction' fee.
There are two types of brokers: Full service brokers and discount brokers. Full service brokers can normally offer more different types of investments, they may provide you with investment advice, and they are usually paid in commissions.
Discount brokers typically do not offer any advice and do no research €" they simply do as you ask them to do.
So, the biggest decision you must make when it come to brokers is whether you want a full service broker or a discount broker.
If you are new to investing, it would be advisable to go for a full service broker so they can help you to make good investments. They will be able to use their skill in investing where you may not understand investing at this point. Although if you have a good knowledge of investing you will probably only need a discount broker to deal with your investments simply to make the trades on your behalf.
Stockbrokers are highly qualified and are required to pass two tests in order to gain their license as a stockbroker. They are also usually required to have some sort of background in finance or business, and have a Bachelors or Masters Degree.
You must realise that there is a difference between Stockbrokers and Stock Market Analysts. A stock market analyst literally analyses the stock market, and their job is to predict how certain stocks will perform and what different stocks will or will not do. A stock broker is only there to follow your instructions and buy and sell stocks on your behalf.
In most cases stockbrokers earn their money from commissions on sales. When you instruct your broker to buy or sell a stock, they earn a set percentage of the transaction. Many brokers charge a flat €per transaction' fee.
There are two types of brokers: Full service brokers and discount brokers. Full service brokers can normally offer more different types of investments, they may provide you with investment advice, and they are usually paid in commissions.
Discount brokers typically do not offer any advice and do no research €" they simply do as you ask them to do.
So, the biggest decision you must make when it come to brokers is whether you want a full service broker or a discount broker.
If you are new to investing, it would be advisable to go for a full service broker so they can help you to make good investments. They will be able to use their skill in investing where you may not understand investing at this point. Although if you have a good knowledge of investing you will probably only need a discount broker to deal with your investments simply to make the trades on your behalf.
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