How To Find An Investment Broker With Information On The JSE, Stock Prices & Stock Market Information
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Your investment club will have to find an investment broker to work with. You can delegate someone to come up with some broker choices and then take a final vote for your decision.
Many investment clubs will use a full-time broker who guides them and offers advice at the occasional meeting. If you don't want to use a broker on a full-time basis you can use what is known as a discount broker.
A discount broker will give you some detailed information about stocks but wont give you advice about what to sell or buy. Using a discount broker seems to be the more popular choice since the purpose of the investment club is to make your own decisions about what stocks you're going to be dealing with.
When you use a discount broker you wont have to pay a huge commission to a full time broker.
Your club will have to take a vote and decide what is in the interest of the majority.
You might also want to think about using the services of an online broker.
Online discount brokers will have low commissions that can be a benefit to your club when it comes to the way you handle your finances. On average an online broker will be up to $8 or less per transaction.
How to Find a Discount Broker
If your investment club has decided that its in your best interests to use a discount broker you'll need to know how to find one.
It wont matter what discount broker that you decide to use so long as your club is being allowed to pick your own stocks.
There is a great deal of competition when it comes to discount brokers so you'll be able to get some great deals in broker fees if you take the time to look for them.
Your investment club should delegate one or two members to find the best discount brokers that they can find, both on the Internet and locally.
There are a few things that you should keep in mind when youre looking for a discount broker:
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Customer service that the broker offers
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Fees
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Other incentives to hire the broker
The fees that you have to pay the discount broker will generally be quite low. You'll be able to see many discount brokers offering you their services both locally and on the Internet.
However, many times choosing the discount broker with the lowest fees means that you may be sacrificing some customer service for this lower fee.
You'll have to decide if you want to trade low price for customer service.
If you're thinking about hiring your discount broker from the Internet there are some things that you should keep in mind.
Online brokers generally fall into one of three groups:
Very inexpensive. If your investment group is planning on doing a lot of buying and selling in the stock market you'll want to think about using a very inexpensive broker for your transactions. Most of these inexpensive brokers charge anywhere from R4 to R12 per trade.
Moderately priced. The mid range price that these brokers charge is anywhere from R12 to R20 per trade.
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Expensive. Brokers that charge a high fee per trade often offer you the best customer service so the price might be worth it to your investment club. You'll have the opportunity to work with a broker that gives you great service. These brokers generally charge anywhere from R20 to R30 per trade.
When you're looking for a broker and basing your decision on customer service and the way the website operates you'll want to take some time looking at the brokers website.
You'll want to make sure that the website is easy to use and easy to navigate.
You'll want to know what type of customer service the broker offers. You'll soon be able to make your decision about customer service after you conduct your first trade with the broker.
Make sure that you find out if there are any other incentives offered that make you want to hire the broker.
Other perks that online brokers offer that can be of benefit to your investment club include:
educational books and materials to buy at a discounted price or to read online.
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Air miles for your air mile program
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Free Internet access
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A discount on your first trade
Your investment club shouldn't make its decision about what broker to use based on the extra incentives that are offered.
Take your time when deciding what broker you're finally going to use. If it comes down to two or three brokers that have caught the attention of members of your investment group you'll have to vote and have a majority ruling.
Always keep in mind that you can switch brokers at any time that you want if you're not happy with the first broker that you've been working with.
You can also find insurance brokers and investment brokers from absa, Standard bank and fnb
concept of the page ...Finding a investment Broker who has information on the JSE, stock prices, the stock market, loans and forex trading