It is just like find the best tailor to make the best man suit designed for you to wear at your best friend`s wedding. Your stockbroker should be able to manage your portfolio and make profits for you as per your annual financial planning. He should be able to assess your budget, needs and your expectations and invest accordingly. On the other hand, he should be able to assess the market as well based on your needs and make wise decisions for investing your money.
It can be really tough finding a perfect broker for you. Prevent yourself from being misled by few abbreviations after the name tags on the business cards. Every one has a history and had experienced bruises in market race of Stock exchanges. All you need to do is to find out and stay away from those who are badly bruised. If you want to find a successful broker for yourself ask for references and check them out for example don`t shy away to make that important phone call. You can ask for the popular two way references.
You can ask your friends and families for their recommendations or better still who they use personally and their performances. Alternatively, you can also ask a stockbroker for his references. It is better to exercise the first options as you have better chances of finding more believable and trustworthy replies to your queries.
When you are about to find a broker, there are several things that you need to take into account and ask for the same from your stockbroker, if required. You should ask for his certification, his experience, licenses, etc. Get all the details about his commissions and fees or any flat fees applicable in case you render his services. It is important that you understand his approach to investing. This approach should be inline with your requirements and your own idea of investments. You need to stay away from a stock broker who wants to invest for quick returns when you are actually looking at long term returns.
The investment approach of him needs to definitely suit your approach and your financial planning. It is being like in marriage, if you and your spouse do not agree on planning your future, there would be no future at all. Similarly, if you and your stock broker do not mutually agree on nature and amount of investment, there would be either no investments or loss making investments. In the end, you would be the one who would stand as a loser as you would not only lose your money but would also need to pay for his flat fee or any commission charges. So always keep in mind this important aspect when you want to find a potential stockbroker.
Ask for his industry experience not only in trading of stocks but also his experience in your choice of industry. If you want to deal in computer stocks, he should have some background in the same. Similarly, if you are looking at infra structural stocks, it is wise to hire a broker having some knowledge about infra structural companies and infra structural sector. Ask for his recommendations and check his recommendations with other competitors as well your friends or people who have already made investments. Lastly, drop by in his office to have a word with him. It would act as a simple background check on your part.