Is It Time to Change Your Stock Broker?
If you have been trading on the stock market for some time, it’s essential to know when it’s time to start searching for a new stock broker. With hundreds of different stock brokers to choose from across a range of different markets, it’s not uncommon for new traders to start off with one stock broker only to find somewhere down the line that they need to find a better one. Different stock brokers offer varying levels of service, for example some will simply follow your instructions whilst others will offer help and advice in order to enable to you get the most from your trades. Here are just some of the reasons why as a trader, it might be time for you to change.
Gijs Nagel, director of retail broker Degiro, believes that some stock brokers charge fees which are far too high. He says, ‘The discrepancy in market access between retail and institutional investors is completely unnecessary and nothing short of a scandal. At Degiro, it is our mission to rectify this. The way we see it: It’s not that our fees are low, but those of our competitors are too high!” If your stock broker is charging extortionate fees for services such as currency conversion or account management, it may be time to look for a different broker who will offer the same services, but at a lower price.
Decline in Success
Are you new to trading on the stock market, but using a broker who doesn’t offer you any advice? If you’re trying your hand with an execution-only broker and having no joy, it may be because you need to tweak your trading strategies and learn more about how to use the market to your advantage and make money. Switching to a full-service or advisory broker can be an excellent way to rectify this and start seeing good results from your trades. Many new traders can often find the stock market a confusing place, which is where these types of stock brokers come in handy as they provide you with the guidance and advice which you need to learn as much as possible about trading and start making a profit. Although it may cost more in account management fees, opting for a well-renowned advisory or full-service broker can be well worth the money in the long run.
Perhaps you have jumped into trading a little too quickly, and didn’t research stock brokers as much as you could have before choosing one to start trading with. This is a mistake that a lot of new traders make, and if you haven’t properly checked your broker’s credentials when you first joined, you could easily fall foul to being duped or overcharged down the line, or worse. If you’ve checked your broker’s credentials and discovered that they’re not all they make themselves out to be, the best thing for you to do is find a new, reputable stock broker as soon as possible.
There’s no need to stay with a stock broker for ever – if you’re unhappy with the service, there are plenty more to choose from.