What To Look Out For In A Credible Stockbroking Firm Pt3

© John Efetobor. All Rights Reserved

A credible stockbroking firm is pride to any nation. Stockboking firms primarily were designed to be a vital platform upon which investors should be able to create wealth from the capital market. A stockbroking firm worth its salt ought to be where investors should receive information and enlightenment about stock investment. Stock firms are designed to assist their clients pick stocks for investment.

Unfortunately, stockbroking firms have abdicated these important functions. Many firms have been distracted from these primary functions and are now pursuing other activities that have no bearing on their visions and missions. That is why it has become necessary for you to do a thorough research before pitching your tent with any firm.

Guiding Lights To Look Out for Includes:

Customer General Satisfaction: Are clients satisfied with the services they are receiving, in other words, do you observe clients dissatisfaction whenever you are around to do business. It is not difficult to find out, by the time you spend 10-20 minutes in the reception hall of an average firm will tell you a lot. You will either find very satisfied and cheerful customers or disgruntled and nagging clients venting their disappointment because of the inability of the firm to satisfactorily meet their expectations.

Integrity And Honesty: Check the past performance of the firm.
Have the firm been involved with malpractices and untoward activities? The easiest way to know is to find out if the firm has any court cases or litigation. You can ask the stockbroker to give you a list of those who currently do business with it for you to confirm the caliber of clients they are attending to, if you cannot find any credible investor in the list given to you, please think twice. You must also keep an eye on newspaper reports on the firm. You can check the compliance department of the Securities and Exchange Commission (SEC) or by asking the appropriate departments of The Nigerian Stock Exchange.

Reach: You should check how widespread the reach of the stockbroking firm in terms of branches is especially for those who live outside Lagos. Does the firm have wide branch network around the country? Are these branches functional? Crosscheck to confirm. Ensure that you don’t transact business with any agent of the company outside Lagos without confirming his or her status with the head office. If the firm has functional and vibrant network of branches, It only shows how prosperous the firm is don’t you think?

Competent Research Department: How sound is the research department of the stockbroking firm you are patronizing. Remember, your stockbroking firm is supposed to be your backbone in terms of stock picks. For you to benefit from the huge profits that are available in the stock market the stockbroking firm must have a sound research department.


What is the qualification and competence of those running the research department of the firm, how many people have benefited from their recommendations in the past? Are they competent in stocks analysis?


If from your investigations, you have any reason or reasons to doubt the credibility of the stockbroking firm, I suggest you look somewhere else for your peace of mind as far as investing is concerned.

What To Look Out For In A Credible Stockbroking Firm Pt 2

© John Efetobor. All Rights Reserved

Presently, there have been serious revolutionary and audacious changes that has taken place in the capital market by the regulatory authorities to protect investors and ensure that there is a level playing ground for investors to do business, but despite all of that, it is incumbent upon investors to do a thorough due diligence before pitching your tent with any stockbroking firm, it is this important subject that this article sets out to address. I am optimistic that the information. You’ll get from this article will open your eyes to be able to effectively filter the charlatans and fraudulent operators in our market from the genuine ones.

Guiding Lights To Look Out for Includes:

Status Of The Operators: Find out who are the directors of the firm and their backgrounds, this can be done online at the appropriate channels. In fact, confirm if the officers of the company are registered with the Chartered Institute of Stockbrokers (CIA). Find out if the management staffs are qualified and well trained to handle the responsibility of a stockbroking firm. How many duly licensed and qualified stockbrokers are trading for the company?

Vision Of The Firm: Every responsible stockbroking firm will normally have at a very visible position especially at the reception hall it’s vision Read through it to ensure if the firm is vision oriented and purpose driven., see to it that the vision of the firm aligns with your expectations. Ask for the profiles of the company to enable you assess the mission statement and possibly the core values of the company. Don’t be shocked to find out that some stockbroking firm don’t know where they going and don’t understand why they are in business.

Solvency: Find out the ability of the stockbroking firm to meet maturing obligations as they come due. Once in a while regulatory authorities may prevail on firms to beef up their operating capital base to meet up with the times. Find out if the firm can meet such emergencies. Find out the firms forthrightness in meeting financial claims of its clients, some firms have been found to divert checks meant for clients to themselves.

Dear investor. ensure you find out every important details about the stockbroking firm you intend to do business with, this can save you avoidable setback.

Please don’t speed read this article, be sure to bookmark this site, so you can return to it again and again. Many visitors begin their days by spending 15-30 minutes here and report that it helps them become more focused, motivated, and confident.

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.