Loyalty is yesterday’s game
The services that brokers offer are constantly developing. You should make regular comparisons and be ready to jump ship.
Some large brokers have clients who are loyal because they are longstanding customers of the group’s other services. But there is so much competition today that loyalty does not pay, or at least not enough to make it worthwhile.
‘The more active the traders, the less loyal they will be to individual brokers and they more they will look for a value-for-money package,’ Dickinson at Barclays says.
Broker comparisons
Broker comparisons on the basis of facilities and charges are available from various sources on the web. In updating this book, I found a useful table of different broker charges on the website of AWD Moneyextra (www.moneyextra. com), which is part of the Chase de Vere group. The Motley Fool (www.fool. co.uk) does a comparison table across a span of brokers. As at mid-2006, you could find some interesting personal reviews of stockbrokers at www.chiao. co.uk. Some of the material is out of date, but the leopard does not necessarily change its spots.
Once you have the overview of brokers, there is no substitute for visiting the websites and checking what you get for your money. Do not be afraid to ring up Customer services or the equivalent, and ask questions.
