Avoiding problems with your broker is easier said than done. To make this happen, here are some suggestions in order to create a good working atmosphere and in the process help you avoid the common problems that bug the investor and the broker relations.

One rule that should be followed is to read and to retain the monthly account statements, confirmations and other information regarding the investment transactions. If there are some parts of the statements are vague to you or you cannot simply understand, then the right thing is to question and ask your broker. If you think that there is an improper business conduct complaint against the broker, then a complaint should be filed in writing to the management of the brokerage’s sale office. Retain a copy of the letter. If the issue cannot be resolved within the firm’s level, then other avenues can be taken like mediation or an arbitrary board. Always follow up the case with them until you get a satisfactory response. Once you cannot get a satisfactory response from the office, then you can always file a written complaint with the FINRA or the SRO.

Here’s another tip to consider; beware of sales pitch that tells you exaggerated claims. These sales pitches may only end only on pitches, with no results to show to you in the end. There are also those brokers that will pressure you to invest quickly. Do business with these people with care and you should not do business in a whim. All business dealings and decisions should be made after much thought and deliberation. Also, never send money to a firm or a representative that you are hearing from for the first time just because you heard one of the best sales pitch ever. Other tips are available online and it is upon you to check and do your homework before digging in.

This entry was posted on Tuesday, September 30th, 2008 at 6:32 am and is filed under Investing Basics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.