List of Stock Brokers - Top 5 Secrets Of Selecting A Stock Broker, From List Of Brokers

a)What are the functions of a stock broker?

A stock broker is an individual or an organization, who is licensed by the government to trade in stocks/shares and has the right to access the share market. On payment of a small fee, he acts on your behalf in the stock market and carries out your transactions of buying and selling of shares. Besides these, he also provides professional advice in debentures sale/purchase of government bonds, and listed property trusts etc.

b)Full Service Broker (Advisory):

Stock brokers are generally divided in two categories:

• Full Service Brokers
• Discount Brokers

As the name would indicate comprehensive services from trading to financial planning of the clients are provided by a full service broker. Based on your financial aims and objectives, he provides advice on the client’s investment portfolio and additions/alterations required in the some from time to time. Since he provides comprehensive services, his charges are a little higher than discount brokers.

c)Selection of a full service broker:

As full service broker will be your vital link for making financial deals, the selection of the same has to be undertaken with great caution and circumspection. You need to assess some of his capabilities in the following fields:

• How much he charges for the services he provides and how they compare with others in the market?
• Is his advice and data backed by adequate equity research?
• Does he have access to floats?
• What is the style and pattern of his investment?
• Is his communication system reliable? Does he communicate with his clients on a monthly, weekly or daily basis? Is he printing any newsletter etc?
• What is the frequency of review of your investment portfolio? Will he review it often though, to increase your returns?

d)Discount brokers (Non Advisory):

Discount brokers generally provide limited services of buying and selling your stocks/shares; based on the orders given by you, via telephone and/or internet. Since their services are of a non-advisory nature, their fee is also less vis-à-vis full service brokers.

e)Selecting a good discount broker:

You need to review the following guidelines before selecting a good discount broker.

• Is he offering any value added services?
• What is the mode of contacting him – phone or net?
• Is he charging any amount towards monthly subscription fees?
• Is he offering any discounts for regular traders?
• Is he asking for a special cash management account for trading?
• What does he charge for buying/selling?
• What is his market reputation?
• Is he doing insider trading?

If you are trying your hand at the share market for the first time, you should avail the services of a full service broker, to avoid getting your fingers burnt. For regular traders, discount brokers will suffice.