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Tuesday, September 24, 2019

Do you need to avail the services of a stock broker?


The investors are aware of the fact that purchasing stocks in the stock market spells success. In this industry where there are numerous stock brokers present a doubt prevails on why you need to invest in a brokerage account maintained by a stock broker.


If you are not keen for the highest intraday margin and a stock broker dealing with your portfolio, then the buck stops here. Though on the other hand if you are interested to earn valuable returns then it makes sense to secure the services of a stock broker. For sure they can help you earn promising returns.

Investing alternatives by not sticking to brokerage accounts

Not only starting with the task of why you need a stock broker, let us explore the reasons why you are not going to need one. If you are planning to invest you would need some form of access to your financial instruments so that you can figure out where you have reached. There are various ways by which you can achieve this goal.

The first place where you trash your excess money is your bank account. There are some accounts that are going to provide you nothing in terms of return, but certain deposit certificates might provide something in return. But one of the major issues with bank account is that the rate of returns stands in no comparison to what you are earning from stocks. In fact no form of investment vehicle will be provided by your bank that is designed to provide you with a true exposure to the market.

The second way by which you can avoid a stock broker is to invest in mutual funds. Here multiple investors pool together their funds into a single investment channel and the fund house takes all the investment   money and invests in a particular channel. Mutual funds go on to specialize in all type of investments as some of them focus on stocks.

But nothing can compensate the benefits that a stock broker might provide you

·         Any stock that is available in the stock market you can buy or sell though your broker needs to have access. In any case most stocks are listed on all the major stock exchanges

·         The brokers can provide you access with the international stock exchanges. This provides you with a viable option of investing in international markets and exercise caution in terms of risk management and stock selection

·         Most of the stock brokers are aware of the value of providing other investment options. This includes mutual funds, bonds or even bank accounts. The stock brokers provide you with a one stop solution to take care of your investment needs.

·         The stock brokers have access to research material  and the clients can tap in order to obtain reliable information about the same. By these tools you can evaluate your option and then decide which investment vehicle works best for you.

From the discussion it is obvious that there are various benefits of availing services of a stock broker.

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