The big banks at the moment will do and say almost anything to keep your business.
Banking, trading, insurance and superannuation customers are leaving the big banks in droves as they hear about exorbitant account fees, cash bribes, stitching up people with products they can’t afford – you name it, the banks have done it.
So, when it comes to one of the most important financial decisions you will make – such as who will I start share trading with, why would you set up with a bank that offers fees for no service?
Why your investment broker is so important
Regardless of whether you are a first-time investor or a seasoned professional, your investment broker offers a window into the share-trading world. They provide you with the online platform to trade, a sounding board, market information, access to Foreign Exchange Trading, CFD trading information and much more.
In the days before online trading, your stockbroker did everything for you through the exchange from identifying the opportunities, placing the orders, buying the shares, executing the paperwork, you name it.
Today opening up a trading account is far more simple than in the past. It is fair to say that stockbroking has changed, and is far more commoditised, impersonal and often confusing for those without the proper education or training.
So, what can you do?
Consumers nationally are leaving the big banks, the big supermarkets or the big retailers and heading back to the boutique firms that offer greater value in their product and service offering, and the financial services and stockbroking industries are no different.
A boutique investment firm in today’s tech-savvy world has their own trading platforms, online apps and market data – just like the big banks. They have all the trading research reports and analytics – just like the big banks.
The big change is that the boutique investment broking groups have personal account managers and ideas from advisors that are provided to you, that meet your personal investing criteria, suit your financial goals and objectives.
What can a boutique trading firm do to help you reach your investment goals?
The key to the success of any and all investments is to have a goal in place. These goals need to be specific, measurable, achievable, relevant, and timely (S.M.A.R.T).
Your goals should avoid being lofty such as owning a Ferrari in 12 months they should be more along the lines of in 20 years when I turn 55 years old, I want to have a share portfolio exceeding $250,000 invested in a diverse range of companies outside of my superannuation account.
With this goal in mind, a boutique broker would sit down with you and work through how you as the investor could make that happen, with little to no impact on the quality of life you enjoy, including your ability to manage a mortgage concurrently, and enjoy an overseas holiday each year.
The key difference with a boutique firm is they are there for you, not for their shareholders’ interests.
What are the steps to working with a boutique investment broker?
Firstly, before you start working with anyone when it comes to your finances, you need to review their Financial Services Guide, if the company you are looking to deal with doesn’t have one readily available, then steer clear of them all together.
Next, once you have read that, speak to someone who may become your account manager, meeting them in person is a good way to start, it doesn’t matter if you have $1000 to invest or $1 million, a boutique firm will look at you as someone they can grow with, so you may be only worth a little bit now, but in the future you may be a big customer – so they will be willing to give you the time of day.
Ask for some client testimonials or speak with a few clients they have on the books, establish a feel for what people are saying, the results they are achieving, and find out whether they are meeting their goals.
Finally, if you feel they are the firm for you, then it’s time to sign up to get started. Remember, you want a firm that will have the online training platforms and smartphone apps the big banks have, as you want to be able to access your investments & trade from anywhere or anytime.
Smart Money Company – investment solutions that are as unique as you are.
With a wide range of services such as share trading services, SMSF administration, training and education, SMC investors get a comprehensive trading relationship with their account manager as well as access to trading courses to upskill and get more knowledge around what and where their next investment will be.
For more information on our investment solutions for clients or a demonstration on how Smart Money Company can provide more value than any of the big banks, speak to the team today and start trading with Smart Money Company.