Stock brokers today have a range of services tailored for the needs of the growing numbers of shareholders.

There are three levels of service you can take:

1. Dealing or Execution Only

You simply call the broker and instruct them to buy or sell the shares you want. They carry out your instructions but will not give you any advice on your decision.

You can always take advice from another properly qualified financial adviser.

2. Advisory

With this service you will get the benefit of the broker's expert advice. They will discuss with you their views on various companies and recommend whether you should buy, sell or keep hold of your shares.

Make sure you feel comfortable with and understand what your broker is saying to you.

3. Discretionary

The broker will take all the buying and selling decisions, contact you regularly to keep you informed, and tell you how much your portfolio is worth.

Choosing a Stockbroker

Selecting a stockbroker to handle your securities transactions is an important process, but it's vital that you first understand your own investment philosophy and the services you'll require.

Determine how you will handle decision-making, your risk tolerance, your goals, the amount you'll be investing and how you'll be paying for your investments.

First time's a charm!

Many people investing in the stock market for the first time need a stockbroker to hold their hand through the process.

Not all brokers provide that, but an ideal broker, carefully chosen, is often the best way to start out.

Many first-time investors don't know the proper terminology involved in trades and can make an error when ordering from a busy trader who doesn't give advice. Do not hesitate to ask friends, neighbors and business associates for recommendations.

Then go shopping among several different stock brokers!

Be candid about the amount of money you are willing to invest and how active you want your account to be.

A broker who has been told that you want a stable, conservative portfolio will be less likely to call you with every hot new tip.

When interviewing potential brokers, find out how extensive the research information and trading resources of the firm are.

Building a relationship!

Don't allow yourself to be pressured or bullied. After all, it is your money. Discuss how often you may be likely to ask for specific price quotes.

If there is activity in a stock and conditions are changing rapidly, frequent price quotes should be no problem ...

But if you telephone simply out of routine or nervousness, you may be cutting into time that your broker could better spend going over his research or otherwise monitoring the market.

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