Why Is It Necessary To Choose The Right Stock Broker?
Your share broker is the most important link between your investments and the stock markets
. You are most likely to make your buying and selling decisions based on the their advise. Therefore it is important to have a broker who is well informed, unprejudiced and gives you instant selling and buying access.
1.Power of information
You would expect your stock broker to be well informed of the current financial and economic scenario as well as the future trends. If your broker does not have the right information, he is most likely to follow the herd i.e., what the majority of brokers might be doing on the stock market. This might seriously risk the chances of your shares as he might have overlooked some key financial data which could have helped you make a significant gain on your share wealth that day. The right share broker will also have advanced tools to predict market trends.
2.Acting without prejudice
It is normal to find stock brokers who have a soft corner for certain stocks either due to brand loyalty or continued success earlier. While trading in healthy stocks is good, your broker might be completely missing out on other stocks which are much stronger and can give you significant gains in your wealth. Certain stock brokers have class A, B and C clients, and if you fall into the latter 2, you will certainly not be served well.
3.Instant selling and buying
Share prices fluctuate in seconds. If your share broker is not able to give you instant access to trading, you might have just lost a huge sum of money. You should choose a stock broker who is always accessible and can ensure that the buying and selling is done at the time most advantageous to you.