To invest in the stock market, it is complex to understand the meanders of this particular field.
In order to make better investments, it is advisable to trust the expertise and relevant knowledge of a stock broker , also called the broker .
But how to select a reliable and serious stockbroker?
What are the questions that must be asked before entrusting his investment to this type of professional?
Here is some information that can help you make your choice in a more flexible way.
Set the profile of your investment
Before going headlong to challenge the first broker that comes to hand, you must first define your investor profile.
Try to ask yourself questions like:
- How much do you want to invest?
- What is the actual capital that you currently have and that you have the opportunity to invest right away?
- What is your knowledge of the stock market?
- In what type of stock market do you want to evolve?
By realizing this profile, you will become aware of your strengths, but also of your limits.
Do you have enough confidence in yourself and in your knowledge to get started alone?
You really have to be able to see reality in order not to put you in difficulty.
But this profile will also be very interesting to help the broker to offer you a customized offer tailored to your needs.
What are the criteria for your broker search?
Do not take this step lightly and opt for a scrupulous approach before selecting the ideal broker.
Base the relationship on trust
Avoid letting yourself be lulled by tempting offers that are nothing more than mirrors to larks.
Do not look that the reduced brokerage fees for you decide.
Ask about the different offers, but also about the brokers themselves: it is possible to find a list of reliable brokers to call on recognized and serious professionals.
Some brokers may have a strategy too nervous for your operation.
Conversely, you may be disappointed by a broker who lacks teeth.
Even if you choose among brokers who offer low transaction fees, it is important to check their reputation.
Opt for a French broker preferably so you do not see it disappear into the wild with your money.
The Autorité des Marchés Financiers has also drawn up a blacklist of brokers to be totally banned.
Make sure your broker has a solid track record and has already confirmed many successes.
Estimate brokerage fees
Brokerage fees fluctuate as much as the stock market price. This sum represents the broker’s remuneration.
Each time you buy a security or invest in a business, you must pay brokerage fees.
It is a commission that comes back to the broker against the services he has provided you.
It is therefore logical that these fees are quite different because they are related to very different factors.
Thus, they evolve according to the amount of the transaction that you have made, the type of account or the number of orders that the broker has made.
Brokerage fees are either a set amount or a progressive percentage.
But beware, the brokerage fees are only a part of the total amount you will have to pay the broker: some actions may generate additional costs.
Decorate all the price schedules so you do not get caught and before signing.
Which broker profile to choose according to your needs?
One broker does not do the other! The quality of the services that are offered to you is really variable. But this is also the case of the character or the way of working of each broker.
Some people are really autonomous and will not have the same need for step-by-step support.
It makes more sense than to call on a broker who is really responsive to stock market orders.
If you need more intense support, opt for a broker that may be less offensive, but that will guarantee you better protection.
He will be more attentive and patient to help you better.
It is, therefore, more judicious to turn to personalized service and that will have a human character to understand your fears or questions.
What is the role of a stockbroker?
The broker or broker is the professional who will make the link between the stock market or yourself.
He executes the orders that you will give him.
Buy, sell or wait, it is you who decide, but it is he who acts and who advises.
He is a specialist in the stock market who has very specialized knowledge.
According to the approvals issued by the AMF, your broker will have a profile different from another.
He picks up your orders and directs them to the trading professional.
To have the possibility to open an account for one of his clients, he must have a license.
He is not able to place orders directly on a stock market but is in contact with the trader.
He is authorized to execute the orders that you will pass to him. It is he who recovers the orders you give to an older collector.
He is a professional who only transmits, as indicated in his name.
His powers are limited, he can not open an account or receive securities.
He receives the funds that you will entrust to him. He manages the account and records all the shares that are practiced there.
Most of the time, you will find all the information concerning the profile of the broker and his attributions on the professional’s website.
Some stockbrokers only handle the transmission of your orders while others are in total control of your account and your actions.
Select the broker that best suits your needs!