Stock Market for Dummies
Picking a Stockbroker based on your Stock Trading Personality
Site Search click tags:
online stock broker - online stock trading - stock broker - stock broker comparison - stock market basics -![[Do Online Trading]: Picking a Stockbroker based on your Stock Trading Personality](http://dotnewbie.com/wp-content/themes/tma/images/thumbs/money-1.jpg)
One of our readers asked the question, is online stock trading better than the usual stock trading (full service broker)? Hmmm, whatever stock exchange you trade in, you got to ask yourself a few questions.
Do I want stock tips or advice from a stockbroker? Am I satisfied with just looking at stock charts and hearing financial news? Do I have enough cash for investing? Do I have enough time to do research?
All these questions should be considered when deciding if online stock trading is good for you or not.
Its really your preference on how you want to manage your own investment. It’s your own money so it is important that you are comfortable with the stock trading method.
Still thinking of those questions huh? Well, we have different stock trading personalities and so you can answer those differently. Hey to help you decide better, here are some important factors you must consider.
Cost
Before you can start actual buying and selling of shares, you must have a stock broker (stockbroker). Yeah you can’t just go into a stock exchange and buy and sell stocks immediately hehe.
Online stock trading involves online brokers or discount broker (whichever you call them). They provide low cost fees or commissions because they offer less services (meaning more work on your part). Full service broker provides lots of services (read on). Low cost is a way to go for most people. But check if the services they provide is all that you need to trade effectively.
Service
Full service brokers provides guidance so this is good for those rich “can afford” stock traders. If you are just starting in the stock market, having an expert trader talking to you let’s you avoid those stupid mistakes. You can call you stock broker, ask anything, and they can provide you with instant stock tips or stock advice.
On the other side with online stock trading, you are alone hehe. You initiate the buying and selling of shares through an online website. This means you have to do the research yourself and decide which stocks you invest into. You are only provided with a bunch of tools to help in your decision like stock charts, news, articles, and a variety of information.
Reliability
Another factor you must consider is reliability of the stock broker.
In online stock brokers, you must consider the reliability of their online system. They must have very high uptime. When stock trading opens, can they handle many clients accessing their system. Does their online system lag.
This is needed so when you do those important buying and selling transactions, you can do it at the right time (timing is important in the stock market).
In full service brokers, reliability of the service they provide. Stock brokers can provide you with stock tips and stock advice but don’t take their word for it. Do some research. Trusted stock brokers are those that put your best interest first before their own.
Check also their services if they have good support and you always have someone answer your inquiries or problems with their system.
The Verdict
Both online stock trading and full service brokers have it’s pros and cons. You have to consider these factors and eventually pick which one is right for you.
So which did you pick? What other factors did you consider? Comment below ^_^
Popularity: 31% [?]
NEWBies who read this post also read:
- Philippine Stock Brokers Comparison
- 7 Tips Smart Stock Traders do to be Smarter
- Loss in Stocks - Who robbed my money?
- My Newbie Experience: Stock Market for Beginners
- Philippine Stock Broker Codes Listing
- Why Filipinos should take risks trading in Philippine Stock Market
|
|
Receive articles on email
Subscribe through email
|
Discussion
Join the discussion and interact.
5 comments for “Picking a Stockbroker based on your Stock Trading Personality”
Post a comment
Speaking about stock tips from your friendly stockbroker… well, if their tips are reliable, i don’t think they will share it to their clients, they would buy it themselves and believe me they would stop working as stockbrokers. Warren Buffet puts it this way, people ask financial advice from people who use the subway(MRT), they are just sales people make their living by buy/selling stocks. Another thing is, people researched more when buying their fridge than when they buy their stocks… in everything we do, we can be succesful if we have our heart in it, and that includes, stock investing.
For Online brokers, for new entrants, highly recommended online broker is Citiseconline, fast execution, reliable, and easy transfer/withdrawing.
Dann´s last blog ..
hi, nice post here. i use both online and broker-assisted transactions. i still prefer broker assisted but the online trading is also good especially when the phone of my broker is busy hehe.
I just saw your message in mybloglog today, have added you to my blogroll. thanks and apologies for taking so long to respond to the message, i rarely check bloglog hehe
sherwin´s last blog ..Spandau Ballet
Well, interesting point, will have to rethink about that such trading business.
This is helpful tips Jhesqi,
I have not tried both, but I think, I will be rooting for the online stock trading for its convenience and revolutionary features. Though I will still consider the actual.
Vic´s last blog ..5 tips on creating business tagline or company slogan
This is very helpful. Thank you so much! Hmm..If I will go to Philippine Stock Stock Exchange office and what to buy share?What will be the scenarios or the steps?