Last Updated on Dec 21, 2019 by James W
Being a successful investor means buying the best stocks that are available in the market. After all, it’s obvious that the best stocks guarantee financial success. However, with several forms of investments available today, investors are now looking into brokerage firms as a medium to do stock market investment on their behalf.
But why are brokerage firms crucial nowadays when an investor can directly buy and sell stocks from the market? In this article, we are going to pinpoint some of the most important reasons why stock brokers are needed to succeed as an investor.
You take control of your own investment portfolio
Opening a brokerage account directly from a brokerage firm means you are in control of your own investment portfolio– there are no banks or mutual fund account holders to do the decision-making for you. This automatically means you have full responsibility of where and how much you should invest, all the while enjoying the perk of being protected by the brokerage firm.
A stock broker might give you financial advice from time to time, but ultimately the investor has full control of his own investment.
Stock brokers offer a wide range of investments
Stock brokers offer its investors a plethora of options to start. Most of the time, these include bonds, mutual funds, exchange traded funds, and real-estate investment trusts (REITs), all available to the investor at his behest.
However, stock brokers know the risks of over diversifying an investor’s portfolio, so they usually pick one or two types that would best fit the investor.
Stock brokers have direct access to foreign markets
Stock brokers usually operate through the Philippine Stock Market, but that doesn’t stop them from looking at foreign markets to trade as well. This opens up a new world of possibilities for an investor looking to expand his stocks by going abroad with as low risk as possible.
You can get access to research resources
Stock brokers know that partnering up with a client who has clear investment goals and who does their research constantly is a good collaborator. This is why they would provide their clients with all the research resources they can possibly need in order to understand the investments they’re making.
Customer service that goes beyond investing
Because stock brokers provide the same investment services to clients, one of way distinguishing themselves from the rest is through their customer service. As clients, this means that you’ll get more than just financial advice, you will be given tools to calculate your mortgage, budget, and more.
Nowadays, a lot of stocks are bought and sold online– these include stocks from other countries. But there’s nothing like being able to discuss opportunities and risk with an expert who can guide you, in real-time, for every transaction. With a stock broker by an investor’s side, there is a bigger possibility of financial success.
