Planet Wealth Stock Market And Options Trading

The Right Stock Broker For You

Picking up stocks is a full time job and you would stand to make money only when you invest wisely. There are two kinds of investors — active and passive.

Now, while the active ones would want to pore through the endless documents, financial statements and do the stock picking themselves, most others either don’t have the skills or inclination (or both) to do it. That’s when choosing a stock broker becomes critical.

Here are 3 ways to figure out How to Choose Your Stock Broker:

• Pick Someone Who Knows Your Financial Goals and Understands Your Situation: More often than not, financial advisers are on their own trip: doing deals for their benefit, selling products and opening accounts for their benefit or for commissions and not for you.

Also, they have a cookie cutter approach to most of the financial advice they render to clients — avoid these people at all costs. You would want to deal with a stock broker who understands your risk appetite, understands your mentality. Ideally, your stock broker must be aware of your financial goals and needs.  It is important that you can sit and talk about your financials pretty comfortably.

• Pick a Stock Broker; not a schemer or Runaway Broker: You should ideally be looking to deal with someone who is patient enough to explain the complicated securities and financial instruments. He must have the acuity to understand and invest in instruments that are in line with your goals and aspirations. You have a right to understand where your money is going and any stock broker who isn’t going to sit down and talk to you isn’t worth doing business with.

• Choose A registered or Competent Stock Broker: This is a no-brainer; there is no point in choosing a stock broker who has absolutely no certifications or someone who isn’t registered with the certifying authorities (Australian Securities and Investments Corporation). According to the Australian Corporation Act 2001, anyone dealing with financial services must have an AFS license. Actually, you should make this your primary criteria and start from this point.

Planet Wealth are a Stock Market educator and advisory service, and they have a great working relationship with competent Stock Brokers.

Written by Clint Maher - Planet Wealth
Planet Wealth Solutions © 2008