AYF Financial’s: Choosing The Proper Financial Broker For You & Your Financial Needs
Depending on the type of financial investing that you plan to do, you may need to hire a financial broker to handle your investments for you. Financial brokers work for financial brokerage houses and have the ability to buy and sell stock / finance on the stock exchange. You may wonder if you really need a financial broker. The answer is yes. If you intend to buy or sell stock / finances on the stock exchange, you must have a financial broker.
Stockbrokers are required to pass two different tests in order to obtain their license. These tests are very difficult, and most financial brokers have a background in business or finance, with a Bachelors or Masters Degree.
It is very important to understand the difference between a financial broker and a stock market analyst. An analyst literally analyzes the stock market, and predicts what it will or will not do, or how specific stocks / finances will perform. A financial stock broker is only there to follow your instructions to either buy or sell stock / finances not to analyze stocks.
Financial brokers earn their money from commissions on sales in most cases. When you instruct your financial broker to buy or sell a stock / finance, they earn a set percentage of the transaction. Many financial brokers charge a flat ?per transaction? fee.
There are two types of financial brokers: Full service financial brokers and discount financial brokers. Full service financial brokers can usually offer more types of investments, may provide you with investment advice, and is usually paid in commissions.
Discount financial brokers typically do not offer any advice and do no research ? they just do as you ask them to do, without all of the bells and whistles.
So, the biggest decision you must make when it come to financial brokers is whether you want a full service financial broker or a discount financial broker.
If you are new to investing, you may need to go with a full service financial broker to ensure that you are making wise investments. They can offer you the skill that you lack at this point. However, if you are already knowledgeable about the stock market, all you really need is a discount financial broker to make your trades for you.
Key Tips:
Now generally a financial broker will charge you anywhere from $50.00 to $75.00 a trader on low value investments while on high value, $100,000.00 and up a certain precentage of the profits is taken. It is important to not rely on your broker as a financial analyist. His job to “sell”, like a car salesmen. Instead of CarFax, you have a few other tools you can use to check the validity of your financial broker’s recommendation:
1) Yahoo Finance
2) Google Finance
3) MSN Money
4) Morningstar
5) Reuters
6) Bloomberg
7) CNBC
8) Investopedia
Using these resources to check and double check any and all investment recommendations, Stock, Bond, Options, Mutual Funds, will ensure you the higest financial sucess.
This has been a “Resource” Product Of: AYFinancial Inc. Check Us Out For More Financial Services & Prodcuts, Direct From Our Seat On The Exchange.
Please feel free to check out our other published financial resource: “What Makes Up A Professional Financial Trader“
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