See the top 11 Ranked Advisory Stockbrokers
What is an Advisory Stockbroker?
An Advisory Stockbroker is as the name suggests a broker who gives advice when purchasing shares. This advice can be in the form of drawing your attention to a new listing or letting you know when a particular stock represents good value. Advice will only be offered based on the type of client you are. As part of your application process with the firm you will be expected to complete a Know Your Client (KYC) form which gives the broker details of your current investments and financial standing including your income, it also assesses what appetite for risk and reward. i.e. if you wish income and low risk then you would probably be recommended blue chip FTSE 100 companies.
Top Tips:
- When using an advisory broker you are going to be paying a higher commission so make sure you get the advice.
- If you are looking for a recommendation from the broker then the best thing to do is remind him regularly as these recommendations tend to go to their favoured clients.
- Try to establish a good relationship with only one broker.
- If you are making a big trade or trading regularly ask for a discount.
- When placing an order remember that small cap companies have a recommended market size. This is the quantity of stock that can be guaranteed at a specific price. If you wish more stock than this you must be prepared to pay more, in some cases a lot more.
- If you have a price in mind you wish to pay ask the broker to place a limit on what you are prepared to pay.
- There is an awful lot of jargon in the world of finance. Don’t be frightened to ask if you don’t understand.
- Ask your broker to call you if the company in which you invest makes an announcement that could influence the company or if the price hits a certain level either a bottom or upper price at which you are prepared to sell at to either cut your losses or realise your gain.