When you need a loaf of bread, then the solution is to go down to the store and buy one. But it is not quite as simple when it comes to buying and selling stocks. The stock market is a much regulated place that is only accessible to licensed professionals. If you want to buy and sell stocks, then you need to go through a licensed broker.
A Full-Service Broker
When you see representations of stock brokers on television wearing suits and talking with clients, then you are looking at full-service brokers. If you are new to buying and selling stocks, then a full-service broker would be the best way to go. These kinds of brokers will sit down and explain the process to you, and then take the time to understand your financial goals.
Full-service stock brokers are generally paid a commission based on the amount of business you do. Since many stock brokers also offer financial planning services, their commissions can vary from service to service.
Many full-service brokerage houses also have websites that customers can use. But, in most cases, these are only used by customers to monitor their accounts, make deposits or withdraw funds to their bank accounts. Here is a list of licensed brokers in Nigeria and their website.
Online Stock Broker
Online stock brokers are generally what are referred to as "no frills" brokers. These are websites that will take your stock order and process it for you. Some sites take a percentage of each order as their commission, while others charge a flat rate per transaction.
The more advanced online stock broker sites have a wealth of resources investors can use to learn how to determine which stocks to buy and sell. Some online websites even have stock trading games that use real stock prices to help customers understand the process. The less expensive online stock brokers offer very little in the way of advice and services. One of the online stock broking platforms in Nigeria is Meritrade.
Being An Informed Stock Client
Whether you use a full-service broker or a no frills website, you should always be an informed customer. In order to successfully buy or sell stocks, you need to keep an eye on economic trends and track companies that are poised for financial success. A full-service stock broker will help you to understand the resources that are available, but an Internet stock broker can also be extremely helpful in understanding the buying and selling process. A regular visit to sites like NSE, Proshare etc. will keep you informed on market trends.
It is not unusual for informed stock clients to transition their accounts from the high-commission full-service brokers to the less expensive website services and since only a licensed professional can actually buy and sell stocks, the average investor must utilize the resources available to them to make the best possible decisions.
Buying and selling stocks is done on a stock exchange by licensed professionals. Any consumer who wants to get involved in stock transactions must get involved with either a full-service or Internet-based brokerage house. But even when you have a broker looking out for your investments, it is still your responsibility to stay informed about the stock market and its economic impact.
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