Frequent Buying and Selling Stocks on my portfolio

1 reply [Last post]
mpwebllc's picture
Joined: 2011-02-12

Please advise and correct me if I am wrong ....Stock Brokers need to meet a monthly quota for their brokerage firm.They make commissions from the buying & selling of their client's stocks.If your broker calls you on a monthly basis to buy & sell, how devastating is that to your portfolio if you always follow your broker's advice to buy and sell every month? What does it say if your broker calls you every month to sell & buy? Is there anything nefarious with this type of activity?

katja's picture
Joined: 2011-02-11

1. registered representatives (stockbrokers) can be paid in different ways, one of which is by commission; many stockbrokers are also registered investment advisors and are paid a fee (like a bank trust dept.) by assets under management. RIA's have a duty to act in the interests of their customer, and trades occur independent of commissions, i.e. if not suitable/appropriate, no trades will occur., though the client will pay for advice, not trading. 2. if your broker calls you every month to buy or sell, perhaps that account activity is what you asked for.3. If your borker calls you every month to buy or sell, it is not "nefarious". Are you making money? Are you making more money by trading than buy & hold ?

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