Understanding Your Investment Broker

It’s one of the most important financial decisions you’ll ever make, which is why it’s crucial to perform the necessary due diligence when choosing an investment broker and brokerage account best suited to your investment goals.

Here are a few of the factors to consider in your selection process:

  1. Your investor profile

How comfortable are you with risk? Do you have a preferred investment style? Depending on the brokerage firm you select, they may be able to help you decide which strategies are more tailored to your financial personality

  1. Brokerage management level: full service or more hands-off?

Whilst some brokerage firms offer comprehensive advice and support, others will assume you want a more hands-off client-led approach (implying a greater financial understanding on your part).

Therefore, it’s important you’re clear as to exactly what you want from your broker in terms of service.

  1. Verification of their investment track record

A reputable investment broker will provide you with full details of their company history, as well as a list of their preferred investments and director profiles.

Before hiring them, it’s essential you check all these details very carefully, not only online but also with Companies House and other relevant financial institutions. You may discover some unpleasant surprises, so tread carefully.

  1. Ask for and look at client references

Whilst most clients will wish to remain anonymous, you should ask your potential brokerage firm to provide you with contact details of some of their current clients, in order to ask them for their experiences.

Many brokers also host informal seminars and meetings for current and potential clients, which should allow you the opportunity to find out more about the company. 

These are a few of the key points to take into account when choosing an investment broker.

For more information and assistance on how to find the right one for you and your investment goals, please contact us.

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