Why choose full service brokers?
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Tuesday, 25 May, 1999 - 22:00
WHAT value is there in using a full service broker and having your own client advisor?
Information is the key to successful investment in the share market. However, some people have the time to do their own market research, keep in touch with the market for trends, announcements, new issues and floats as well as economic information and news that would influence the sharemarket or prices of market sectors and individual shares.
Investors may be able to use a discount or Internet broker when they don’t need any assistance or advice to buy shares.
For those investors who don’t have the time or knowledge, a personal client advisor can assist in avoiding those errors that can be costly for the inexperienced investor.
Client advisors are professionals in an active and sometimes volatile industry and it helps to have one you can trust and feel comfortable with.
Some of the benefits of a good client advisor are:
l Execution of order skills
When buying or selling shares, trained SEATS operators endeavour to buy at the minimum and sell at the maximum price for clients who want to time their entry or exit rather than accept ‘the market’ price.
In thinly traded stocks, one or two cents can more than compensate for the higher brokerage costs.
l Research and recommendations
Providing clients with comprehensive research on top 150 listed stocks is invaluable when making decisions regarding which stocks to buy or sell.
A full service broking firm has access to many sources of research information that an individual is unlikely to have.
l Floats and news issues
By dealing with a full service broker you can gain access to firm stock in attractive initial public offerings such as Telstra.
l Advisor alerts
If you are a regular client and develop a strong relationship with your advisor you may be able to benefit from sudden trading announcements during the day (i.e. if an announcement occurs that will change the price of an individual share, your advisor may ring you to let you take advantage of this).
Other services may include portfolio recommendations and reviews, margin lending, seminars, derivatives, custodian nominee services, money market and fixed interest deposits.
Most services are free, generally the only cost being the share transaction where brokerage is negotiable depending on volume and frequency.
The key to increasing wealth in the sharemarket is information – information that is up to date and relevant, provided free to allow investors with client advisors to gain an advantage over less informed investors.
Information is the key to successful investment in the share market. However, some people have the time to do their own market research, keep in touch with the market for trends, announcements, new issues and floats as well as economic information and news that would influence the sharemarket or prices of market sectors and individual shares.
Investors may be able to use a discount or Internet broker when they don’t need any assistance or advice to buy shares.
For those investors who don’t have the time or knowledge, a personal client advisor can assist in avoiding those errors that can be costly for the inexperienced investor.
Client advisors are professionals in an active and sometimes volatile industry and it helps to have one you can trust and feel comfortable with.
Some of the benefits of a good client advisor are:
l Execution of order skills
When buying or selling shares, trained SEATS operators endeavour to buy at the minimum and sell at the maximum price for clients who want to time their entry or exit rather than accept ‘the market’ price.
In thinly traded stocks, one or two cents can more than compensate for the higher brokerage costs.
l Research and recommendations
Providing clients with comprehensive research on top 150 listed stocks is invaluable when making decisions regarding which stocks to buy or sell.
A full service broking firm has access to many sources of research information that an individual is unlikely to have.
l Floats and news issues
By dealing with a full service broker you can gain access to firm stock in attractive initial public offerings such as Telstra.
l Advisor alerts
If you are a regular client and develop a strong relationship with your advisor you may be able to benefit from sudden trading announcements during the day (i.e. if an announcement occurs that will change the price of an individual share, your advisor may ring you to let you take advantage of this).
Other services may include portfolio recommendations and reviews, margin lending, seminars, derivatives, custodian nominee services, money market and fixed interest deposits.
Most services are free, generally the only cost being the share transaction where brokerage is negotiable depending on volume and frequency.
The key to increasing wealth in the sharemarket is information – information that is up to date and relevant, provided free to allow investors with client advisors to gain an advantage over less informed investors.