In an uncertain world, it’s challenging to make good investments. Every business person wants a way to safeguard their savings from the unpredictability of the markets and inflation. Investing in stocks and other securities is one way to protect yourself from a depreciating local currency.
But investing in shares can also be complicated and confusing if you don’t know what you’re doing.
Working with a broker makes sense for many investors in Dubai because they provide valuable advice about worthwhile investments and how much money to spend on them. You can get more info here.
There are several different types of brokers out there, so knowing what kind of broker would be the best fit for you requires some research beforehand. In this article, we’ll go over all of the different types of brokers, all the pros and cons associated with each type, and give you tips on how to go about choosing a good broker.
So without further ado, let’s get started!
Types of Brokers in Dubai
What are the Different Types of Brokers?
There are several different brokers out there, so finding one that’s right for your needs should be relatively easy. Although they all serve the same general function ( they help you buy or sell shares ), they specialize in different things, which helps match them up with people who have similar interests.
There are more than five types of brokers, so we’ve included some extras at the end to give you an idea. Some examples include:
Discount brokers: These are usually the cheapest type of brokers out there. Typically, they have excellent customer service and charge a flat monthly fee to have an account open. Some examples include EasyMarkets, Saxo Capital Markets, etc.
Full-service brokers: As the name implies, these types of brokers offer pretty much everything a retail trader or investor could ask for in terms of research and analysis tools. They also have exceptional customer support, so if you need help, don’t worry about being stuck on hold forever!
There aren’t too many online brokers in the UAE, but some examples include Alparisnd the well-known and trusted Saxo Capital Markets.
Through a bank: Some banks offer broker services to their clients, so you can use the same credentials to get started if you have an account with them. They often provide quality trading platforms, but they typically charge way more than anyone else, so be careful! Examples include Emirates NBD, Mashreq, etc.
Whichever type of broker you decide on, make sure that it’s within your budget and has the features you need to succeed. You should also keep in mind that some brokers limit what kind of transactions you’re allowed to do. For instance, maybe there are only certain types of shares that they allow you to buy.
This is why it’s important to ask potential brokers about their list of limitations because not only will it give you a better idea of what you’re getting into, but it can also help weed out some brokers that might otherwise be too expensive for you.
Caveat: Not All Brokers Are Good
Unfortunately, just because a broker is legit doesn’t automatically mean they offer good customer service. Some brokers ( both online and offline ) only care about making money and therefore won’t bother treating their customers very well.
Even if they provide great research tools, excellent trading platforms, etc., the lack of attention to detail in customer service could make them more trouble than they’re worth. After all, there are plenty of other companies out there that do an excellent job with both aspects, so why not go with one of them instead?