donderdag 7 april 2011

Get The Best From Your Stockbroker

It is a requirement that a qualified stockbroker is used to buy and sell shares on the stock market. But they will do much more for you than just execute trades. Brokers will follow share prices, and advise you on potential gains to be made on positively moving stocks. A stockbroker can offer you a wide range of services and they will charge different fees for these services. Brokers can perform trades, can offer you market advice and manage a portfolio for you.

If all you want to do is trade shares then a stockbroker will execute this for you based on your instructions and make the trade. The buying and selling service is available to novice and experienced traders alike but the broker will not provide any advice here. A commission is usually charged for this service and is often calculated against the total value of the trades that you want executed. Conducting trades is the most popular service offered by a stockbroker.

Second to offering basic trades is the provision of advice to investors. As the advice provided by the stockbroker draws on their expertise of the market and involves them in a lot of work to recommend profitable stocks to you a higher fee will be payable. The stockbroker will also spend time with you to make sure that you understand everything that is being recommended to you. This is really important if you are a novice in share dealing and the payment will probably consist of a fixed fee plus trade commissions.

Portfolio management comes in two forms which are advisory and discretionary. There is a big difference between the two, an advisory portfolio service is where a broker will examine the market and provide several recommendations for you of stocks with potential and then it’s up to you. If you choose a discretionary management option, then your stockbroker will work the portfolio without your input providing you with regular reports on how well the picks are performing.

If you are interested in real time share prices then go to

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