If you are considering going forward
with a broker, arrange a meeting with your broker. Ask him for
information. Ask lots and lots of question about the company, their
experience and also for references. It’s your right to ask
questions. Ask him about his rates, commissions and other payables.
If you feel that the broker is not forthcoming with information, you
might have to revise your decision.
Once you select your broker and made
your investment, don’t just expect the money to start rolling in.
Even if your broker is the most honest broker, you shouldn’t just
sit back and relax. Ask him questions at this phase too. What is he
investing in? What will be the expected returns?Review your
Letting your broker full control of
your investment is a big mistake. If you find out that your brokers
is buying and selling stock without prior consultation, talk to your
branch manager. Tell him that you did not authorize the transaction.
Buying and selling without notice violates state and federal law.
Most beginners often make the mistake
of letting their broker run the show. If you are uncomfortable with
how your broker is handling things, you can also ask him to connect
you with someone higher up in the agency. Don’t be embarrassed to
feel like a beginner. You are one and its okay to accept them.
Even if you have been a victim of a
fraud, you still have certain rights. The most important of those
rights is your right to fight back. You can file claim against your
stock broker or the firm. When you do so, an arbitrator will be
appointed to you by the NASD or the NYSE, depending on your stocks.
You can win back your investment, and sometimes maybe even your
interest and attorney fees along with punitive damages. The key is
to file your claim as early as possible.