Ideal Stockbroker Qualities
online trading in stocks and shares has opened up a whole new world of trading opportunities for both the common investor and the stockbroker. Since online trading or brokerage does not require huge investments in terms of manpower and office supplies, numerous brokerage firms have proliferated all over the world. All a stockbroker needs to start his or her brokerage firm is a license, which can be obtained by passing two licensing exams, a computer, and an Internet connection. The question arises whether he should open a trading account with any of the brokerage firms he finds on the Internet. Wouldn’t it be like walking into the clinic of a doctor who has obtained a medical degree and has put a plaque with his name on the door?
Since you are entrusting your hard-earned money and financial future in the custody of a stockbroker, you need to find out what qualities your broker should have besides the official business license and a website.
The first important feature of an ideal stock brokerage firm should be its website. The website should be simple, professional, and informative. You should provide details on how the brokerage firm offers more in terms of services and benefits to the client.
The website should dedicate enough space to educate customers, both newbies and experienced ones, about the whole process of making money through stocks and shares trading. The education section of the website should start with the most basic information required for an absolute beginner. It should enlighten you on what a stock is, how it is traded, what risks are involved in stock trading, how the trader can protect himself against such risks, what are the stock trading tools and how the trader can use them to his advantage.
Like any other field of knowledge, stock trading has its own special vocabulary that a person must be familiar with in order to understand the stock market and the concept of trading. The website should explain stock trading jargon through a glossary of technical terms. There are words like ‘chickens’, ‘bulls’, ‘bears’ arbitrage, ‘short’, ‘long’, ‘stop loss’, ‘resistance levels’, ‘bottom/bottom’, ‘top’, ‘demand and supply’ , etc. about which you need to understand.
An ideal stock brokerage firm’s website should provide and explain the use of stock trading tools such as stock news, stock historical charts, real-time streaming watchlists, customizable stock evaluation platform and trading platform. stock testing platform and advanced technical stock charting platform. In short, the stock brokerage firm should allow both newbies and veterans to get the most out of it. The website should train a newbie to be a professional stock broker. Creating a kind of mock stock trading platform or hypothetical portfolio that allows newbies to learn the tricks of trading can do this. The website should explain the possible pitfalls in stock trading and how they can be avoided. You must train the client to judiciously use the combination of stocks and ETFs to make profitable and risk-free investments in the stock market. The client must be educated to view historical performance and historical charts.
An ideal brokerage firm should provide a platform to meet the individual needs of a long-term investor, the active trader, or a professional trader.
The broker must provide a web-based trading platform that features a trading center with real-time quotes and charts, daily, weekly or monthly scheduled investment services, broadcast watch lists, free dividend investment possibilities , free ACH electronic deposits and withdrawals accessible behind any firewall. .
There are many other technical features that a new entrant to the stock market must understand and use. The website must provide a downloadable trading application platform with features such as streaming L1 quotes, customizable real-time charts with technical indicators, extended hours trading, customizable platform interface, time and sales data, etc.
An ideal broker should provide customizable timed investment tools that allow the investor to build a satisfying portfolio over a period of time and save it for the future. With such customizable tools, an investor can create a personalized portfolio of stocks, specify an investment amount, and schedule the account automatically.
With huge amounts of client money in their trust, the brokerage firm must provide tools for protection against potential fraud by purchasing some form of reliable insurance for a substantial amount.