all investors have burnt their fingers with share brokers and there is no practical way out to get rid of them
2006-10-24 16:53:50 · 4 answers · asked by hello i 1 in Business & Finance ➔ Investing
It depends. There are managers and there are brokers. If you have a broker manage your money they are not a broker, they are a manager. A broker takes your order like the guy at McDonalds. He might have a series seven license to manage money and do that too. When a rich guy says he is calling his broker, often times he means his money manager. Some managers in Australia really ripped people off in a serious way. For instance you could give the guy $10,000 and then find out you owe $100,000 or more! What happened was they were forging authorizations to put people's money on margin (jargon for a loan) and then buy and sell a lot (called churning) to collect the buy and sell fees. They even banned people from taking their money out of their accounts or reporting what was in the accounts.
2006-10-24 19:47:14 · answer #1 · answered by gregory_dittman 7 · 0⤊ 0⤋
Brokers make money thru what is called "SPREADS". Lets say the price of a stock is $100. The bid price is $98, and the ask price is $102. You will have to buy at $102. So in order for you to break even, you will have to wait for the bid price to go up to $102. In other words, price has to go up $4 for you to break even. Even worse, you have yet to pay commision. So there you go. Then, you have to consider slippage or price shifting(google it). Then you have to consider liquidity of the market you are involved in, are there any buyers when you wanna sell.
I'll make this short, its not that they are blood-suckers. What they are doing is legal. The truth is that we lack the education on this topic, that's all. Like Robert Kiyosaki said, there're 2 problems we face, not enough money, or too much money. So which one do you want?
So what is one of the few markets suitable for an 'average' person who has money and wants to grow it? Forex. I have listed a few resources for you. Check it out. And make your decision. Trade smart.
1) www.babypips.com (best way to start your journey)
2)www.forexbastards.com (unbiased user reviews of brokers/courses etc)
2006-10-24 17:41:20 · answer #2 · answered by KSD21 1 · 0⤊ 0⤋
They are doing their business.. they have to feed their mouth and the other employees working with them. they will not commit to make mistakes., they will guide you., your anxiety to earn money make you to get loss., you are paying them for your business dealing. if you make lakhs of profit you are not shareing your profit with them. And if you are getting loss they will not help you. This is a game., you have to play in a very carefull way. If you think it is a Gamleing you are the losser.
2006-10-24 19:47:50 · answer #3 · answered by ar.samy 6 · 0⤊ 0⤋
Share brokers always gain, whether you buy or sell, whether you gain or loose.
2006-10-24 17:09:48 · answer #4 · answered by Meeto 7 · 0⤊ 0⤋