You may think that choosing a broker is easy and obvious, but there are some essential things you need to look for when selecting the right broker. Many brokers now stake their claim as being the best or having the best service, which can be confusing for novices who don’t know what they should be looking out for as critical elements in making their choice.
Seven tips to help you choose your premium broker:
1. Easy Account Access and Transfers
It’s a key one because all brokers should provide account access through various platforms, including the web and mobile apps. While it is probably safe to assume that most modern-day brokers will have this available, it is still worth checking just in case. For example, some smaller brokers with less traffic might rely on third-party software companies for these services. Account transfer speeds are also an issue – while most will suffice if you’re only transferring small amounts of money around your accounts if you plan to make larger transfers, the speedier, the better.
2. Low Commissions and Fees
It’s obvious, but it pays to look out for brokers who offer meagre commissions and fees. In most cases, the lower, the better when it comes to commissions, but this also depends on what type of account you have with them – some firms might prioritise active accounts over premium accounts, while some might do the opposite.
3. No Hidden Fees
Again this is another obvious one that you should be looking out for. Brokers who offer accounts and services that they intend their customers to pay for upfront with no catches or hidden fees are the best bet because there should be nothing extra to worry about other than your savings account growing over time – no surprises.
4. Knowledgeable Customer Services Reps
It’s where brokers can set themselves apart, as some might have customer service reps who are well versed in all aspects of what they provide, while others might not be quite so knowledgeable on every single aspect of the products they are selling. It does depend on how much research your chosen broker has done before enabling their staff with the necessary knowledge to sell their services appropriately.
5. Software and Applications
It’s another factor that might separate the good from the bad when it comes to brokers – some might have a decent website but then lack in actually providing useful apps on any mobile devices you may own. Others might go from making software for various platforms, while others will offer nothing in this respect. Some of this also depends on how much research they’ve probably done before allowing their employees access to products and tools which can benefit them in one way or another.
6. Keep Costs Low – don’t offer a load of unnecessary services
Some brokers might be all too keen to provide you with a range of different ‘value-added services, which don’t exactly equate to much for what they cost. In most cases, the best brokers will have the bare basics and not overdo anything other than what’s needed. It’s another one where your chosen broker should already do plenty of research before allowing their staff access to particular products or features that simply aren’t going to benefit you as a client in terms of growing your savings account balance.
7. Make sure they’re regulated
Brokers who aren’t regulated in one form or another is another factor you should look out for when finding the right brokerage firm to place your trust in. While there are probably plenty of brokers with good intentions, there are still some who might want to take advantage of clients with no regard for their customers whatsoever. You can usually check if a broker has any formal authorisation by simply looking at their website (read more here) and seeing what it says on this particular topic. Alternatively, you could ask them yourself.
