Is it possible to trust stock brokers! Each type you tend to classify a particular class of people you end by stereotyping the entire class. A single apple is not going to spoil the entire set of apples. But still a lot of people think of generalities and this is the manner by which we have to live with. But before you can really decide to trust the brokers there are some points to consider
Which is the type of stock broker?
Before you are going to figure out whether stock brokers can be trusted, there are various types of stock brokers. Many people feel that all brokers are the same and for them the lowest brokerage in India is the only point to choose a broker. But this is not a fair decision as far as the choice of various brokers is evolved.
First is trading broker as they are only going to execute trades on your behalf. The broker is not going to provide any recommendations on the type of stock to sell or purchase.
The sales brokers pitch a client to purchase a particular stock. But the broker needs to disclose whether the broker has a vested interest in the stock for which you are going to purchase.
Technically you cannot classify an analyst as a broker, but they have an individual opinion as far as purchase of stocks is concerned. They undertake a detailed study of stocks before suggesting which one to buy or sell. Just like the brokers they have to disclose whether they have any vested interest in any company or not.
From the discussion above, it would not be a fair way of classifying brokers as unsatisfactory as a trader broker goes on to executes trades on behalf of the clients. Now the question is can you trust an analyst or stock broker. Though most of the brokers provide quality services, but a few shoddy ones do gave a bad name to the industry as a whole. They go on to pressurize clients on what stocks to buy. By following the above pointers you can keep away from the manipulative deals of these operators.
Sometimes people might come up to you and recommend a stock broking company. You need to undertake a proper research about the company you have to choose. Take a close look on what people have to say about the company. At this point of time you have to bear in mind that there is no 100 % favourable situation. With the internet being a platform to shed out hatred, negative reviews are expected to come anytime. In fact some of them are even written by the competitors of the companies. The only problem you have to guard is if you witness a constant negative pattern.
A viable option to consider would be stock forums. When you are about to search for a stock broker give due consideration to secondary sources of information.
