Top 8 tips to choose the best stock investment advisory company
Updated on 20 April 2017
All the stock investment beginners think that investment in stocks and mutual funds is one of the most important things and decisions should be taken with utmost care. However, there’s one more decision which is even more crucial i.e. choosing the right stock trading advisor. There are multiple companies out there that provide stock market advisory services. However, most of them are fraud. So, you must choose one carefully. Here are some of the best tips to choose the best stock market advisory company.
- SEBI Registered advisory company: The first and the foremost trick to check if the stock investment advisory company is genuine or not is to check whether the company is SEBI registered or not. Proceed only if the company is SEBI registered.
- Talk about accuracy: Ask for the accuracy. If they guarantee over 90 percent accuracy, just walk away, as they are clearly fraud. No one can guarantee such high amount of accuracy. So, stay away from such market-beating brags.
- Check the flexibility: Check how flexible it is! You cannot just be online all the time, so ask if they can provide you the services over fax or phone. If they do, check the prices out, as it will be definitely different from online trading.
- Perform a background check: Background matters! What would you do before buying the stock? You would research about it first, wouldn’t you? In the same way, you must also do some research about the advisor you are planning to hire.
- Price is not everything: You get what you pay for. Don’t hire the stock investment advisory company just because it offers you the services at the lowest rate. Most of the times, price indicate quality!
- Customer service: What is the point if you have to keep waiting to get advice? The best way to test the company is to call their customer service centre with a fake question, just to know how quick and good they are.
- Pay structure: Whether it is commission-based advisor or a fee-based advisor, all types of advisors have their own pros and cons. However, if you are a newbie, make sure no one fools you. Discuss about the fees and pay structure before you seal the deal.
- Easily accessible: Make sure you hire the company that allocates you a stock trading advisor who will be easily accessible to you all the time. You will want someone who understand your goals and concerns and the one who takes your current and future needs into account.
Make sure you go through the above mentioned tips and tricks before hiring the stock trading advisory company so as to choose the best one.