How to Choose and Deal with the Sub Broker
When one is the stock exchange, the ordinary investors are not allowed to make any transactions. This is because for the stock exchange the transactions when selling and buying stocks are carried out only by the registered traders who are known as the brokers. A majority of the stock exchange brokers are busy in the high-volume trading and they are not interested in dealing with the small investors. This means that the small investors will have to make an investment decision and then find a broker or the sub-broker who will execute the orders on their behalf in the stock exchange.
The investors should ensure that they find professional and the most qualified sub-brokers. This is very important as much as finding other professionals. For the first time investors, one suitable way that they can select the sub-brokers is by relying on recommendations from co-workers, relatives or consulting with professional broker associations for assistance so that they can select the most qualified. As an investor, it is essential to note that the Sub-broker is not your friend, they will charge you. They will also keep a track of whatever is happening in the stocks market and this is how they will make a living or even regulate it. To the investors, the sub-brokers may seem like very informed financial experts although in every sense of it they are like salespeople. They will earn a commission on all the transactions that are made on behalf of the investors. Therefore their wish is that the investors will buy stocks that they don't own and then sell the ones that they have. This is one way that the sub-brokers will earn higher commissions and as an investor, you should be very careful and aware of what is happening. Be careful so that you can only work with brokers who are qualified in this field.
Ensure that you find a broker who will give you the right advice so that you do not end up buying stocks that you do not need and selling stocks that you do not want to for their own gain. Be careful as an investor so that you do not make the wrong investment decision. When sub-broker moves to a new stockbroking firm, the investor should be careful, because the sub-broker can give the investor the wrong guidance so that they can earn more from the new firm.
As an investor make sure that you only deal with a registered and also a licensed sub-broker. They must have a license so in order for them to qualify to carry out transactions in the stock exchanges, have a signed agreement with the broker that indicated the terms and also the conditions clearly.
Learn about sub brokers here: https://www.britannica.com/topic/Electronic-Trading-1517831.