Many business firms today have already adapted to technology and the use of the internet to conduct stockbroking and other financial engagements. The presence of these emerging technological trends undeniably improves the security and speed of their transactions.
Stockbroking firms like CMC Markets are some of the online companies that fully utilize the leverage of internet connectivity in improving their financial services and business strategies.
A person interested in trade sharing would probably contact these online stockbroking firms because they are accessible and thoroughly available any time of the day.
However, some individuals are still looking for the “old-fashioned” stockbroking. These are companies that would call you up frequently to give you financial tips in buying or selling shares. In exchange, you can also ring them if there is a service that you want, such as changing of your portfolio. Unlike the modern stockbroking, the traditional ones are somehow more emphatic and personal in approach.
As the days are passing, these firms are gradually dwindling. Moreover, people are asking if their services are now excessively expensive compared to online stockbroking firms. Some gurus in the field have an answer to these questions.
According to Tanya Jefferies of This is Money, traditional stockbrokers still do exist. On the other hand, she said that these services are as costly as you expect them. Jefferies advised that a person should contemplate first on how much extra profit he/she can have by contacting a stock-picking expert on the phone.
She said that considering the size of your portfolio will be the key in determining if whether traditional stockbroking will benefit your or not. If your portfolio is not that large, then you should change your mind.
“Old-fashioned” stockbroking firms usually charged their premium fees at an exorbitant rate. This means that a small portfolio will not stand a chance in the trade-off between assets and service charges.
Another financial adviser, Tim Bennett, also expressed the same sentiments as Jefferies. Bennett told that these “traditional” stockbroking firms still do exist, but the speed and rate of their services are something that you might make you think twice. “You can still find several modern investment firms can still give you the traditional way of stockbroking services,” Bennett said.
“They can call you and give you a piece of advice on how to construct a suitable portfolio for your assets. At the same time, they will aid you as well in other related services in a much faster approach,” he continued.
In the end, Bennett told that your choice should anchor on your needs and goals. However, he also emphasized that the strongest currents of financial movements are happening online.
Although it is clear that Bennett and Jefferies are both highlighting the downsides of traditional stockbroking in the present mainstream of online transactions, the two of them still agreed that internet-based executions are not all advantageous.
“They are not always the cheapest. Moreover, it is not suitable for all type of investors” Bennett told.
In the end, it still boils down to choice and your availability. If a person doesn’t have the time to manage his/ her account, then letting an online manager do it will be the best for you.
However, if you can dedicate your time to managing your investments, then the traditional way might suit you well. Moreover, if you have a family member or a friend who is quite versatile on financial management, then you can seek any advice to them.
This method is still “traditionally motivated,” and thus can help you along the way.
On the other hand, Richard Stone, a stockbroker in London, also indicated one reason why the services traditional stockbroking firms are expensive. According to Stone, the giving of advice–which automatically includes the current changes in regulation–makes it more risky and costly. The stockbroker told that this scenario should be expected. However, he divulged that this has an unintended repercussion.
Those fees that collected by traditional stockbroker firms from their wealthy clients are somehow no longer usable as a way to subsidize their lesser net-worth customers. Contrary to the traditional services, online stockbroking firms can deliver faster services. Gradually, the number of products and provisions they offer are increasing. These factors reduce the cost of their services, while still maintaining a competitive price in the industry.