As brokerage firms play an intermediary role between a trader and the market, making them crucial players in the securities market, investors should choose a trustworthy and reliable broker – the first step before investing. invest in stocks.

Investors should know the importance of a brokerage firm, why a broker is needed when trading securities, and why choosing the right brokerage firm is important.

A stockbroker is an agent of a brokerage firm who is primarily responsible for opening trading accounts, investing, and managing accounts on behalf of clients. Brokers are registered members of the exchange.

Commerce these days, unlike traditional marketplaces where sellers and buyers meet to exchange money for goods, largely operates on electronic platforms, and anonymously as well.

Not all transactions in a securities market, from the purchase/sale of securities to the clearing/settlement and transfer of cash and securities, can be carried out entirely by investors, hence the broker needed

facilitate these transactions by using their systems to connect all market operators.

Each stockbroker may provide their own unique add-on services to clients that differentiate them from their competitors. An established stockbroker can help the investor increase their chances of success in the market by using their own investment tools.

Choose the right broker

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Different brokerage firms have different commission rates for their services. Since commission is part of the expenses that investors have to spend when buying or selling stocks, an investor should find a company that offers the lowest commission and does not charge a minimum fee.

Brokerage firm commission rates on the Cambodia Securities Exchange (CSX) range from 0.40% to 0.90%, with some firms charging a minimal fee while others do not.

For beginners who trade a few stocks at a time, it might be more beneficial to choose a broker that does not charge minimum fees. However, the lowest commission is not always the best deal, as a full-service broker who offers more add-on services can do a lot of the groundwork for an investor and therefore charge higher fees.

Multiple services

Some stockbrokers offer more convenient services and procedures, including opening a new trading account as well as depositing, withdrawing and transferring funds.

Some companies offer investors a more favorable trading system for placing orders and trading.

A brokerage firm may have its own trading platform allowing investors to place orders and offering detailed trading reports and market statistics, investment portfolio overviews, company information, market related news and other important analysis tools.

These services ensure that investors have better access to fundamental and technical analysis tools before making investment decisions.

Cambodian brokerage firms use a unified trading platform – the Mobile Trading System (MTS) – which was established by CSX and is offered to all investors.

Some brokerage firms offer services such as free advice/recommendations, free stock market analysis reports, and even free educational resources such as live webinars, in-depth how-to guides, video tutorials, and glossaries.

Investors can use more tools from high-quality brokers to increase their chances of success.

Another advantage for investors is that brokerage firms offer good customer service and professional, reliable investment advice.

Brokerage Firm Ratings

CSX has created a rewards program that evaluates the performance of all members on a quarterly basis. This helps investors identify reliable brokerage firms to provide professional advice on their investment strategies.

Investors can find on the CSX website the performance of the top five brokers/members on a monthly basis according to different criteria.

As investors are entitled to create trading accounts with more than one brokerage firm, they can always include or replace firms among the available brokerage firms registered with the exchange.

Contributed by: Cambodia Stock Exchange, Market Operations Department
E-mail: [email protected]
Tel: 023 95 88 88 023 95 88 85

Disclaimer: This article has been compiled for informational and educational purposes only. It is not intended to offer recommendations or act as investment advice. Cambodia Stock Exchange is not responsible for any loss or damage caused by such use.