Choosing a stockbroker in London can be a daunting task. Here are some tips to help you choose the right broker for you.
Check out their credentials.
A premium stockbroker in London will have industry-recognised qualifications, such as the Chartered Financial Analyst (CFA) designation. Such professionals are generally more expensive because they are considered at the top of their profession. Brokers who do not have these qualifications may be cheaper, but they also risk making costly mistakes, which may work against you rather than for you.
Do not choose someone who cannot provide references or previous clients
Make sure to interview your potential broker beforehand and ask them if they can provide any references or names of previous clients. This is essential information to help you gauge what kind of stock trading services they provide and how well they can manage investments.
Check for regulatory licenses
A broker operating without a license, or whose license has been revoked or suspended, may not be trustworthy enough to handle your money. This is why it is vital to check their credentials and ensure that the person you hire has all the proper permits to operate in London.
Do some research on your own before meeting with brokers
Before you sit down with any potential candidates, try to do some initial research on the web about them and check out what other clients have had to say about their services. This can give you an idea of how much experience they have and what skills they bring to the table.
Be on the lookout for legal jargon and red flags
When interviewing potential brokers, keep an eye out for any language or behaviour that gives you cause for concern. For example, if they try to dazzle you with fancy words and terms or make promises about returns, cut them off and ask them to explain it in more straightforward terms. Also, avoid anyone trying to rush you into signing any contracts immediately.
Ask them about their specialities
As with any profession, some brokers’ strengths are in areas that others are weak at. For example, some stockbrokers might be very knowledgeable about the behavioural finance aspect of investing, but they may not have much experience working with foreign markets.
Find out how they charge fees
Some premium stockbrokers in London will work on a commission basis, whereas others will charge a flat fee. Others may have their unique way of charging fees, so you need to ask them your questions beforehand and find out how they work with clients. You should also inquire about any hidden charges that might apply for things like gifts or travel. A good broker should be open and transparent about all the costs associated with working together, so make sure to get it in writing before committing to someone who does not feel right for your business.
Don’t let loyalty sway your choice
You worked with one London stockbroker for years, but now he has decided to close up shop. This can be understandably frustrating, especially if you are not happy with his replacement. However, this is no time to act on emotion. If you want to make the best decision possible, do not let loyalty keep you from hiring another professional, especially if it means getting better service and having access to more resources.
Trust your instincts
Trust your instincts while interviewing prospective brokers. It is natural for people to find some candidates likelier than others, so do not beat yourself up about it too much. However, listen to your instincts if certain red flags begin popping up during the interview process. You should never feel anxious or afraid when speaking with someone who will be responsible for managing your investment portfolio. If you have concerns, take note of them and look for another candidate instead.
You have just read nine tips on how to choose a premium stockbroker in London. You can now choose a premium stockbroker in London that is right for you and your financial situation. If you are new to trading, we recommend using a reputable online broker from Saxo Bank; learn this here