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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