When it comes to making direct investments on the stock market, you’ll need a licenced stockbroker. A stockbroker is a qualified professional who has the authority to sell stocks and shares (securities) on your behalf.
A stockbroker can help to trade your stocks and shares directly, and will usually offer three types of service:
- An advisory service, which involves giving you advice on what to buy or sell
- A discretionary service, in which they’ll make decisions for you
- An execution-only service, in which you tell the stockbroker what to buy or sell (increasingly, this is becoming an online service).
Fund managers and financial advisers can also use stockbroking services to invest on your behalf, so you may want to speak to an adviser to get some guidance and advice.
Questions you might like to ask a financial adviser or a stockbroker…
- What’s the minimum trading limit?
- When and how will you transfer title of the assets to me?
- What are your charges, when do I pay them?
- Do the charges vary depending on the type of trade or time it is carried out?