Key questions to ask your stockbroker
A stockbroker is your entry point to the market. You need a stockbroking account so you can buy and sell shares. But not only does your stockbroker provide you with this crucial function, you can also rely on him for accurate information about the market, the shares you want to buy and any other ‘breaking news' that's important. But to get the best out of him, you need to make sure you call at the right time…
As a private investor, you’ll have to open a stockbroking account to invest in shares.
You’ll find that some brokers can be a bit picky about the ‘type’ of clients they’re prepared to accept. Some stockbrokers only want to deal with clients of a high net worth who’ll invest significant amounts of money into the market.
But regardless of the size of your broker account, you’ll be able to find a broker to represent you. There are plenty of them to choose from!
Once you’ve found a broker, it’s important to establish and build on your relationship with him, explains Gareth Stokes in Fear, Greed and the Stock Market
After all, you’ll rely on him for accurate information on overall market activity, bid offer spreads
and any other important ‘breaking’ news when you call to place a trade.
Important questions to ask your stockbroker to make informed decisions
When you phone your broker, it’s always a good idea to start with an opener like: “How’s the market looking today?” Since your broker is on top of the action, he can give you a good idea of what’s happening in real time.
It can also be beneficial to ask him about one or two shares you’re watching, just to feel him out on what he thinks of these opportunities.
But, here’s the important thing to remember: DON’T let him sway your opinions on the shares. You already have your own ideas; you’re just increasing your knowledge by adding your broker’s ideas to the knowledge pool available to you.
You also need to remember your broker can be very busy. Many people get upset because they feel their broker has cut them off or spoken harshly to them. This isn’t usually the intention.
Brokers have high pressure jobs and they usually work at top speed. They’re in the business of buying and selling shares and don’t necessarily have time to chat.
You can get around this problem by phoning your brokers during quieter times in the day. Whatever you do, don’t expect your broker to chat idly with you during market open or the closing auction at the end of the day. They’re simply too busy!