Buying shares is normally done through a stockbroker, thus the first thing you need to determine is the type of broker that will best serve your purpose. It’s also vital for you to find out if you want to deal over the phone, by post, or online, like most people do now.
You should take advantage of full advisory services online, so you can come across with a broker that will assess your individual circumstances, needs, and objectives, and then devise a method to fit your requirements, administer your investments, and give you suggestions on purchasing and selling shares. Though, the final investment verdict always depends on you.
You can also go for a broker who provides discretionary service. In this type of service, your broker has the opportunity to purchase and sell good stocks on your behalf without seeking your approval first. The unique advantage of this service is its highly tailored treatment to your investments, so it is more expensive than other type of brokerage services.
At present, most investors carry out their own research, which is a very significant component of investing in shares. If you would like to do the same thing, you should search for an execution-only stockbroker to help you in buying shares online.
This type of service means that your chosen broker will get your order and perform it for you. Keep in mind though that these brokers can’t grant you any suggestions regarding your investment decisions, though many furnish all kinds of research as well as online tools both to beginners and experts.
Choosing a Broker
Most novice investors consider an execution-only service as a part of their stock trading strategy since it is the most economical and due to the fact that many brokers will not get you as a discretionary or an advisory client except if you have a considerable amount to invest.
If you are looking for a broker who will guide you through the entire process, which is absolutely a good idea when investing, it’s best to contact regional or smaller brokers, who have uncomplicated requirements to handle your account.
Do not forget to assess the services of an IFA or independent financial adviser, who can assist you on what shares to buy. After which you can get an execution-only service. It is also beneficial for you to join or apply in an investment club, where you can acquire and share ideas with other stock market investors.
Finding a Broker
For the most part, finding the most suitable broker for you depends on your predetermined requirements, but there are four significant factors that you should take into consideration: speed of execution, quality of information, cost, and available markets. In general, the more information on any offer, the more you will have to pay the broker.
If you consider buying shares through internet services or telephone, expect an instant dealing. On the other hand, postal transactions normally take a couple of days to complete. If this is your first time to make a deal, you should be ready for both identity and credit verification. You can pay commissions to your broker in two ways; percentage of the deal or as a flat fee.