Stock market is merely a complex game with trading rules that are globally accepted. The trade is stock market is more of a bumpy ride. This bumpy ride is what brings investors’ interest. But rarely do people understand the tricks of the game. This is basically because trade in stock market is uncertain. The stocks may go up or down. It is mostly unpredictable. Somewhere the investors think that they are going to need a professional help to deal with their game. This is the point where a fly by night stock broker helps himself up.
Nowadays exploiting of the investors’ money has become more prevalent. People involve themselves in an unfair way to get to what they want. The long time it takes for the investigation stands only helpful to the fly by night stock brokers. As long as they are not caught, they continue with their suspicious activities.
Some stock brokers may post advertisements about getting bigger in stock market. Their ads invite people who want to make quick money. It is obvious that people get more attracted these kind of marketing. Little do they know about the consequences of taking the wrong path and going exactly where an investor shouldn’t go: fly by night stock brokers. Actually, some of the tips that are given for quick money making in stock market are not based on any research or proof. The tips offered by them may not be trustworthy. This type of activity is mostly seen in online investment tips. It is quite shocking to know how people are so blinded that they can’t even make out the true facts behind these. It is all because of the want to make money as soon as possible. The driving tool is that people are more reliable on those who are actually in the market.
The strategies that these services provide have very less chances of victory. These services leading to victories are highly dependent on luck and hope. Also there have no recourse if there happens to be a loss.
Fly by stock brokers lack many legal processes. Some may not have registered properly. Some may not possess any IT returns for several years. Some may even not have the service tax registration.
There may not be any records of information of qualification about the advisors. Having a low level of qualification is not so reliable and has to be notified.
Make sure he doesn’t mix up investor fund with his own assets. The client assets and the firm assets have to be separate. If they are mixed up, then you know that there is something serious going on.
To handle with unexpected financial crisis, a capital reserve is maintained by the brokerage firm. There are also supplementary insurance policies to protect you. See that your brokerage firm has them too.
The best way to not to be fooled by your brokerage firm is by maintain a clear record of your investments precisely. A clean record can be of great help when there is some serious situations. It helps you to keep your records upright.
If you come to know that your brokerage firm does this too, report it immediately to the regulators. If they find out if they stock brokers are unreliable, they may address the situation or probably see what can be done to protect your capital.
The basic ignorance and the blind attraction towards fake ads without any verification are the factors that strengthen the fly by night stock brokers. They just take the opportunity when they get it. It is always better to think twice before registering even if their tall claims and grand successful record invites you.
