Article researched and written for Fill ya Boots! 

by Les Fearn

Can you remember buying your first house and asking advice from your financial adviser about which mortgage to choose? (How much will it cost me to set up? Should I opt for a repayment or endowment mortgage? What are the redemption penalties? etc etc)  Well, if you’re one of the many new private investors coming to this site, then finding the right stockbroker probably won't be as stressful, but will certainly require some fact finding and asking probing questions into the services on offer. 

The road to making a ‘fortune’ is not going to be an easy one, you will get gazumped on the odd occasion (that’s a guarantee) and will require a lot of patience.  However, this brief guide will give you some ideas on what to do, on a serious note, about choosing the right stockbroker? 

Finding the right one – the one you are happy with - takes time and effort. If you’ve been reading the bulletin boards here and on other financial websites, you will have seen many people tipping particular companies which you know you wouldn’t mind putting some of your well-earned savings into. 

Its all about Speed

There are 3 ways in which you can sign up with a stockbroker here in the UK, each with their own advantages and disadvantages.  Postal share dealing is the slowest form, and in this age of technology, is just about obsolete, so is not going to be discussed further here.  With telephone share dealing, buying and selling shares is much quicker – you actually get to speak to your broker and ask his/her advice, and are given a price to buy/sell at straight away – deal done.  Internet share dealing is fast becoming the most popular form of share dealing, and with the surge in demand reaching up to 10,000 deals per day for one of the largest brokers, Barclays, the internet is sure to revolutionise this for all of us.  Just looking at online trading, this alone has tripled in the last three months and is expected to do the same in the next six months.  It is thought that by March 2000, 20% of all private investor trades will be conducted via the internet. 

Its all about Information  

So where can I find information on which stockbroker to choose ?.  Whilst some of us may have internet access at home or work, not everyone has both, so we have decided to list a selection of the telephone stockbrokers and internet stockbrokers.  Remember it is not just about price though.  Things you may want to ask your stockbroker before committing yourself may include:

·        How long will the application process take approximately? (you could be waiting up to 2/3 weeks)

·        Can I buy/sell shares any time during the working day, or do you only deal at specific times?

·        Do you offer a credit limit, or must I have funds already in an account prior to dealing?

·        How is settlement made – by cheque, credit card or direct debit?

·        What is the approximate waiting time in getting through to the brokers desk when I want to deal?

·        How long is it before I receive contract notes?

·        Can I deal in European and/or US shares in addition to UK equities?

·        Do you offer an out-of-hours ordering service?

This is not an exhaustive list by any means, but should give you some indication of what questions you may wish to ask before committing yourself.

Its all about which Stockbroker ?

We have highlighted both telephone and internet-dealing stockbrokers that are available to UK private investors below.  Most of those chosen have been recommended by our users here at Fill Ya Boots!, but it will be down to personal preference which broker you decide is best.  If at any time you feel unhappy and wish to change to an alternative broker, this should not be a problem.

So, Good Luck & Happy Investing.  

Telephone Stockbrokers 

Internet Dealing Stockbrokers 

Article researched and written for Fill ya Boots! 

by Les Fearn