The first step towards investing in the stock market is finding the right stockbroker. Choosing the right broker is often the difference between investing success and failure. To justify his or her commission, your broker must help you profit from opportunities while guarding against market risks. Therefore, while choosing your broker, we recommend that you look for the following qualities:
Volatile emerging stock markets are often driven by a herd instinct, with investors stampeding in or out at the same time.
Quality research provides investors the ability to anticipate market trends, get a reasonable sense of companies’ earnings expectations through rigorous and fact-based investment research, well in advance, and thus stay ahead of the herd.
Your broker should have a record of successfully forecasting such trends. Macro-economic forecasting, technical analysis capability and early market intelligence are essential requirements.
Along with market timing, stock selection is a key part of the investment process. A broker must be able to identify stocks that are under-priced and under-valued relative to other stocks and the market in general – basically, search out stocks that the rest of the market has overlooked. This is achieved through incisive, original fundamental analysis of individual sectors and companies. Select a broker with a top quality research team covering all major sectors and stocks.
Quality research underpins all of Taurus’ principal activities.
Timely research publications
We regularly update our clients on macroeconomic, stock market and sector trends through our daily briefings and other periodical research publications. Clients are also provided with timely recommendations on individual stock prospects. Our research advice is based on a continuous and detailed evaluation of economic indicators, industry and company specific information.
Our research advice is available to all our clients free of cost.
Technology and information systems
Apart from a core team of in-house professionals, our research facility includes our best in-the-industry Analysts and an invaluable Research Analytics Tab (Taurus Analytics portal) on the Trade-cast or Taurus Tick mobile application. Both are easily accessible to Clients. d statistical publications.
Taurus also provides research and consultancy services in areas such as finance, industry, trade, macro and micro economic policies.
Once your order has been placed, you would wish to ensure that your broker executes it efficiently. By that we mean buying or selling the quantity you want at the best possible price. Efficient execution requires a combination of sharp dealing skills, market intelligence and a large diversified client network. The last is a key quality to look for in a broker: a widespread client network allows a broker to quickly cross match client orders in illiquid stocks.
Large client base
Taurus’ brokerage services cater to local institutional clients such as mutual funds, unit trusts, investment banks, insurance companies, brokerage firms, and selected individuals. We have established ourselves as a premier brokerage house in the Pakistan market on the strength of swift and transparent execution capabilities and an unrivalled ability to match large and difficult cross trades.
Brokers are often faced with conflicts of interest between their own trading positions and their clients’ orders. Thus trading integrity is vital if you are to receive the best possible prices from your broker. Choose a broker with a market reputation for integrity.
Client confidence is our key concern
At Taurus, we recognize that client confidence is the foundation of our business. We apply rigorous internal procedures to avoid potential conflicts of interest, and ensure that our actions are always underlined by transparency.
Adequate capital backing
Brokers often deal with clients on a delivery versus payment basis. This means that if you buy (sell) shares you will make a payment (deliver shares) first and receive shares (payment) later. You are thus exposed to a settlement risk. Make sure that your broker has an adequate capital base and shareholder backing to protect you against settlement risks. In addition to our equity capital, we have the backing of the substantial financial resources of our sponsoring institutions.
Quality of human resources
The success of a financial services company rests on the quality of its people. To deliver the quality of service that you as a client are entitled to, a broker must employ the best human resources available. At Taurus you will be cared for by a team of experienced, dedicated professionals, with a commitment to excel at what we do. We recognize that ours is a service industry, where technical excellence alone is not enough. Each one of us at Taurus, therefore, works at building long-term relationships, based on winning the trust, confidence and loyalty of our clients.