What To Look Out For In A Credible Stockbroking Firm Pt1

© John Efetobor. All Rights Reserved

Stockbrokers are vital links in the chain of our investment pursuit. The way trading and investment is designed, an individual cannot transact business direct with the Nigerian Stock exchange except through a stockbroking firm, so that makes stockbroking firms very important as far as investment is concerned.

Unfortunately, many stock broking firms nay, stockbrokers have taken undue advantage of unsuspecting and sometimes gullible investors. There is no doubt that the stock market has generated so much excitement on account of the more than normal returns on investment for players in it. This has attracted many investors in to the capital market, many of them unenlightened. Expectedly, the market has attracted stockbrokers who take advantage of ignorant investors. There have been cases of stockbrokers and fund managers that have ran off with investors funds.

This article is divided into THREE parts. Each complementing and synergizing to produce maximum results for you; Let's zoom our lense on the guiding lights to look out for which lncludes:

Updated Technology: find out if the firm has a vibrant and functional customer-friendly. and updated Website with vital facilities? For instance, can you check for current price list of equities? Can you get the prospectus and registration forms of important companies coming to the Nigerian Stock Exchange to raise funds? Can you get important company news from such website? Is the website updated regularly with current information? Can you transact business online without having to physically visit the firm? Can you check your account online? Is there any kind of alert incases of emergencies or investment opportunities that always make themselves available everyday?

Functional Customer Service: The customer service of any stockbroking in my opinion is a very vital link between the firm on the one side and the clients on the other side. As an investor you need to be concerned at how swift the customer service of the firm you you intend to deal with responds to your enquiries in an effective, courteous and matured manner. Important signals you want to look our for includes: How responsive is the customer service? does the customer service evade or give excuses to enquiries? Are they responsive to calls? Find the attitude of the customer service to small investors in comparison to big investors.

Legal Status: Please find out if the firm is currently registered and licensed by the regulatory authorities like the Nigerian Stock Exchange and Securities and Exchange Commission. Every legitimate stock broking firm operating in the capital market is licensed by the NSE and SEC. Do a further due diligence by going to the website of the Nigerian stock Exchange or the Stock Exchange facts book to confirm if the firm is currently licensed and recognized. Furthermore, ensure you find out if the firm is registered by Corporate Affairs commission.

Dear investor please you cannot afford to hinge your investment the assumption that because a firm has a beautiful with excited and zealous staffs can automatically translate to credibility. Many a investor have been brutally deprived of their hard earned cash because of this oversight.