January 3, 2012 11:08 am
i want to start trading
could you name a broker who do not cheat clients
It depends on how much control you exercise with yourself when trading through a broker. IN case of online brokers there is little to worry.
Dear RV, Don’t you think the day trading itself is a kind of cheating & yet you are asking for a broker who is honest. Moreover are you aware of the risk associated with day trading?
Cheating is 2 ways:
1) Incorrect book keeping – Many online brokers dont generally resort to this. Some offline brokers do this only when the transaction volume is huge/heavy churning in which case it is difficult to reconcile for the individual. By choosing an online broker you can almost be sure incorrect book keeping may not happen (Ofcourse people have a lot of stories on online brokers too, but IMO the volumes are lower). In most cases incorrect charges will add up to few hundreds, if at all.
2) Incorrect/unsuitable advice: Many of them give out stock tips as if they know where the market is headed in the next 2 weeks. Most of the them are incorrect. Again, even if correct, it may not be suitable for all investors. For example, a stock may be high risk/high return and may not be suitable for all folios. Still stock tips are dished out at the general public. This category of brokerage firms are actually riskier for the invesor resulting in loss of capital.
Recommendation: Go with Online broker, take recommendations as starting point and research yourself. Dont DAY TRADE, btw!
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