|From:||"G Stolwyk" <email@example.com>|
|Date:||Sat, 23 Dec 2000 13:45:28 +1300|
Let us talk about the service given by advisors and start with the contract between a broking firm and the client.
H: There is a difference between contracts and the clauses referring to disputes will not be similar.
It pays to obtain a contract before appointing a broker. If you are doing trades over the internet, eg. 'The Sharechat Netbroker', then the situation is clearer; after all, you are entering any buy/sell order yourself.
A well trained broker will recognize a client's voice; however, it is vital having the broker repeat the order. Insist on this!
The larger firms use recorders and the tapes are used where there is a dispute.
I had one concerning an Australian trader.
I think that I could have won but the advisor had given such excellent service that I decided not to pursue the matter. After all, I was well ahead with the returns!
G: How do you rate advisors?
H: (1) Those who don't know anything, (2): Those who think that they know a lot, and(3): Those who do know a lot but think that they don't know enough!
Group(1) disappeared in the 1987 crash. There are some in group (2) and you need to be aware of them as they could cost you money. Obviously, you are responsible for any decisions following the advice given.
Group(3) often qualify their opinion or give you supporting material to read. They will never be unemployed!
G: The client will need to be aware of the following:
The broking firm, through their advisors, will support the findings of their own analysts.
When the broker has a company as a client, then the advisor and the literature should state so when putting a Buy on a stock;
their share price can sometimes fall a great deal before a Hold is issued!!!!.
H:I have had some experience with brokers over the years and found that the best advisors will profile a client and serve him/her with the literature and advice commensurate with the level of risk/ reward wanted.
Obviously, you pay for this through fees which are higher than those charged by a Net broker!
G: And what should a client do before placing an order?
H: Be at rest; write down the order; always have the Sh. and Fin numbers ready when selling!