Choosing a broker
Whether you choose a full service or an execution only broker depends on the levels of service you want, and the price you’re willing to pay for it. If you’re comfortable with your own research and opinions, an execution only broker may be all you need. Still, if you want access to floats and someone to ask opinions of, then full service may be the way to go.
Once you’ve decided on the type of broker, you need to choose one. You can get a list from the Australian Stock Exchange and if you want more broker comparisons, click here.
If you’ve decided on a full service broker, you’ll need to ring around to find out what services each broker offers. If you’ve a relatively small amount to invest, don’t be surprised if some brokers are downright rude. It may take a while to find someone who is willing to take a small investor under their wing. It’s perhaps unsurprising, as novice investors are high maintenance in their formative years.
Once you’ve chosen a firm you will be allocated a client adviser. Under the law, your adviser is required to know your risk profile and investment objectives. That’s the only way they can provide you with advice that is suitable for you. But don’t be afraid to ask for another adviser if you’re not happy. It’s important to have rapport and trust with your adviser as you will be relying on them for sharemarket advice.
If all this sounds a bit daunting, you can of course choose an execution only broker. You can usually research their services on the internet. Some sites even allow you to ‘test drive’ their website to see if it meets your requirements. Each site has different features, and some charge for extra services. Make a list of what you absolutely must have and what you can live without and evaluate each according to your checklist.
Finally, whether you choose a full service or an execution only broker, you’ll need to set up a new account first. As it is a bit like opening a bank account you’ll need to supply a bit of information, and some identification.
Once your new account is set up, you’re ready to buy and sell shares!
Congratulations!
You have completed the How to Buy it tutorial.
Now you are ready to start the next one: What Comes Next
