Online Investing Vs. Personal Broker
Stockbrokers used to be an investor's main source of information on stock and market analysis with advice on when to buy and sell. The Internet has brought all that information within easy reach.
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Significance
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Online investing is available 24 hours a day, seven days a week unlike a personal broker who may not even work in your time zone. This means there is no need to use a personal broker unless you want investing assistance.
Benefits
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For the experienced investing enthusiast, there are few things as thrilling as personally researching and managing an investment that turns out to be very successful. On the other hand, for those who do not feel comfortable with investing, the peace of mind a good investment broker can provide can be worth any extra expense.
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Considerations
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If you have little experience with investing, find the subject dull or have some knowledge but no time to devote to researching good investment ideas, having a personal broker advise you can be the difference between portfolio profits and losses.
Misconceptions
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Not all stockbrokers charge commissions for their services just as not all online investing is less expensive than using a personal stockbroker so compare your costs vs. benefits carefully before making a decision.
Warning
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While the use of a personal broker can have its conveniences such as account problem reconciliation, historical pricing on estates, custom investing advice and other useful services, an unethical broker can churn your account by encouraging useless trading or make suggestions of inappropriate investments because they pay him more commission. Do not hesitate to call the branch manager if you have any doubts about your broker.
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- Photo Credit Image by Flickr.com, courtesy of Rafael Matsunaga
