Hi All
The Australian Financial Review had a great article today "Dont be afraid to grill your broker" basically exploring the relationship that people have with their brokers and how it generally is a bit one sided from a power and knowledge point of view.
They have outlined a list of questions which the AFR think might be useful when considering using a broker for the first time or an existing relationship, which I thought others might be interested in.
(1) Do you invest in the stocks you recommend?
(2) Do you have business relationships with any of the companies you recommend investing in?
(3) What commitement are you going to want from me to get my business in the first place?
(4) If I don't turn over my portfolio regularly, will you still give me good service as a client?
(5) Do you play favourites - will I be your first call, or your 10th, or your 50th?
(6) What are your qualifications and why do you know any more than i do?
97) What is your track record?
(8) How do I start building a portfolio?
(9) Can you get me allocation in an IPO?
(10) Will you do the thinking for me, or do you expect me to do it?
(11) Should you be my only broker?
(12) What's a good return and over what time frame?
(13) What do you cost?
Although I would probably baulk at asking my broker if he/she played favourites (Qu5), the rest are pretty valid and appropriate questions to ask. Perhaps I would reprhase Qu 5 to say "If an opportunity to invest came along, in what time frame can I expect you to get in contact with me...."
Best wishes
Corsa
The Australian Financial Review had a great article today "Dont be afraid to grill your broker" basically exploring the relationship that people have with their brokers and how it generally is a bit one sided from a power and knowledge point of view.
They have outlined a list of questions which the AFR think might be useful when considering using a broker for the first time or an existing relationship, which I thought others might be interested in.
(1) Do you invest in the stocks you recommend?
(2) Do you have business relationships with any of the companies you recommend investing in?
(3) What commitement are you going to want from me to get my business in the first place?
(4) If I don't turn over my portfolio regularly, will you still give me good service as a client?
(5) Do you play favourites - will I be your first call, or your 10th, or your 50th?
(6) What are your qualifications and why do you know any more than i do?
97) What is your track record?
(8) How do I start building a portfolio?
(9) Can you get me allocation in an IPO?
(10) Will you do the thinking for me, or do you expect me to do it?
(11) Should you be my only broker?
(12) What's a good return and over what time frame?
(13) What do you cost?
Although I would probably baulk at asking my broker if he/she played favourites (Qu5), the rest are pretty valid and appropriate questions to ask. Perhaps I would reprhase Qu 5 to say "If an opportunity to invest came along, in what time frame can I expect you to get in contact with me...."
Best wishes
Corsa
