Are you interested in stocking investments? If yes then you should be aware about how to trade in a secure manner. Having a reliable broker is very important if you are looking to survive in the stock market and earn good profits. For a healthy investment profit, it is very important that you share a good relationship with your broker. Here are few simple factors that can be used to identify a reliable broker.
- Incomplete information
A reliable broker would never hide or skip any piece of information related to the stocks that you have invested in. He would inform you about the risks attached with the particular stock type. Along with that, he would also share the previous records related to the stock with you. You should remember that there is no stock type which is completely risk free. If a broker is convincing you to make investments by saying that a stock is completely risk free, he is not being truthful to you.
- Trading without permission
It is a fact that a broker has the authority to handle your account and make investments when he wants to. However, if he is executing transactions without taking your consent, it is breach of trust. The broker should take your consent when he is executing a transaction. In addition to that, there should be a written record for every communication that takes place between the trader and the broker.
- Interest Rate Offered
It is always good to check the interest rate offered by the brokerage firm. On an average scale, a good brokerage firm would offer an interest rate between 3 and 6 percent. However, some brokers simply do not offer anything to the trader. They do not provide this information until the customer questions them about this. As a trader, you should be careful before you pick a trader.