Choosing a Trading Representative

Extracted from http://onefinanceasia.com/forumsview.php?tid=109

The following is a list of characteristics and qualifications you should establish in choosing your trading representative:


—Easy to talk to. You should feel comfortable with your trading representative. The more your trading representative knows about your financial situation and goals, the better your account will be served. You will be giving your trading representative some very personal information. If you feel uncomfortable, you may not give your trading representative as much information as might be needed to properly service your account.

—Doesn’t pressure you. You need to keep in mind that your investments must please you, not just your trading representative. A good trading representative will take the time to find the investment strategy that is best for you and won’t put you into a certain investment just because other customers are.

—Pays attention and acts on what you say. If you tell a good trading representative that you don’t want a certain degree of risk or a certain type of investment, then that trading representative won’t be constantly recommending that investment to you. On the other hand, a good trading representative will try to find out why you don’t want a particular investment and may even recommend the investment if he or she believes that such an investment is best for you.

—Explains things until you understand. The securities business is very complicated and can be difficult to understand, especially if things aren’t explained properly. A good trading representative will provide you with information and will take as much time as necessary to explain a proposed transaction until you understand. Remember that this is your investment—you have every right to understand exactly what is going to happen with it.