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 advice that clients get from full service providers are solid enough. This is because firms or companies only shell out information that is based on research. It is because of this extra ounce of work that goes into advice dispensing that complete services charge high fees.
To some extent, full service companies or professionals do have impacts on trading outcomes. This is especially if traders take the advice of a stock brokerage company seriously. If you are with a comprehensive provider and you do follow their inputs and tips, you will succeed or fail depending on the quality of advice provided.
It's not all the time that brokers influence trading success. There are also some investors who opt not to go for complete providers but for discount ones. These are companies or brokers whose main responsibility is reserved solely on trade placement. In other words, they offer no extra information or consultations. These providers leave every decision entirely in your hands. Because they don't have a lot to offer, they don't charge very high for their services. This is the reason why they are known as discount brokers.
Just because a full stock market broker can help you succeed it doesn't mean it is the best choice for you. The pieces of advice that brokerages shell out can be influenced by many different theories and external data sources. There is no telling exactly if what they say is good for you especially since their tips may not match your specific risk level tolerance and your personality as a trader.
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.
Yes, a stock market broker can help you succeed. They are not however wholly responsible for your trading outcomes. In the final analysis, your success still really depends on the decisions that you make. You may or may not act on the advice of brokers.
