subject: Is A Stock Market Broker Responsible For Your Success? [print this page] Lots of people get obsessed over finding the best stock market broker. This is because they think that brokerage companies and services play big parts in their success. There may be some truth to this. It is worth asking though how far brokers really determine trading success.
A lot depends on the specific type of broker that you go for. Full service providers are often on the list of considerations of traders who aren't finance experts. The most basic role of these services is to place trades. Because they do offer full service however, they also offer a host of other nice features to clients. At the very least, they should send out regular stock brokerage newsletters. The best of these offer genuine insights into trading markets. Some companies also permit consultations wherein clients can ask brokers questions about the advisability of certain decisions they want to make.
The pieces of information that full service companies give may be well worth taking. These companies spend a lot of time and money on research to come up with their insights. It is because of this extra effort that traders can reasonably expect to be charged high.
Because of the nature of full service companies, they may indeed have some effect on trading results. As a trader, you might fall into the routine of simply following the advice of your stock brokerage company. In this case, you will, in effect be placing the fate of your trades partly on someone else's hands. Your success or failure will therefore depend on how good your broker is.
You can't always pin success or failure on the firms though. This is especially true for traders who settle for discount services. As opposed to full service counterparts, those that offer discount services only take charge of placing trades. No advice, extra information or phone consultations are made available to trading clients. If you get a discount broker, every decision you make depends entirely on your one personal evaluation of the circumstances. The advantage of getting a discount broker is obvious. You don't have to pay extra.
You might go for a full stock market broker if you feel that you need very good technical advice before making decisions. Complete service outfits however, aren't always the best options for all traders. Always remember that even the best pieces of expert advice are always influenced or tainted by many different theories and research results. You can't tell for sure which tip is exactly right and which ones are misses. Also, you can't tell how well broker advice matches your risk tolerance capacity.
Ideally, every trader should follow a custom system or plan. One that is tailor made for you can help you detect trades that will fit you best. This ultimately means you never have to worry about the possibility of losing too much. Once you have a system, you may not have to rely on the advice of brokers too much.
A stock market broker can have an effect on trading results. It isn't right to say though that they alone are responsible for whatever happens to your trading float. Even if you decide to get a full service broker, it's still your choice to take their advice or not.
