Finding a good broker can be tough and demanding. A bad broker can perform poorly executed transactions, and can cost you a lot of money. So here’s my guide on how to find a good broker that won’t interfere with your investment performance. Here’s the criteria.
- Someone who’s not constantly giving you tips on what stocks to buy.
- Someone who’s services are cheap.
- Someone who performs a fast transaction
Brokers aren’t in the business of brokering for the sake of you financial health.They’re in the business to make a living, to make ends meet at home, which means they need to generate LOTS of commissions. And how do they generate lots of commissions? By calling you with tips every once in a while of course! By calling you with tips and urging you to act on those tips, the broker is ensuring that he makes a healthy stream of profits from your commission. The tip probably wasn’t actually intended for your financial benefit, but it certainly benefited his (the broker’s)! Plus, you shouldn’t listen to tips and just blindly follow them. I included ‘listening to tips’ as a part of my article on 7 Common Investment Mistakes. Always do your own homework. And certainly don’t trust a broker that doesn’t have your financial interest above his own.
Head on over to read my full article titled How to Find a Good Broker.