Change Of Brokerage Account

[Yusuf]

Dear Respectable Member of this Forum,

It pained me when I think of what I am about discussing on this Thread.

The problem is: it is easier to pass through the hole of a needle than to change a broker in Nigeria. Why??? Is that the norm everywhere. Members that are abroad should confirm this to us if it is applicable everywhere.

Must we device means of forceful sales of our holdings with them at unfavourable prices if we are bent in changing them? In business, mistakes are allowed as you learn from them. But it seems mistake made in choosing a broker is a life time mistake which you may either have to contend with or burn your fingers to make corrections.

We all pass through this agony one way or the other.

Dear forum member, base on our strenght in this forum, I want to believe we can make an impact by suggesting what we need to do to change this urgly trend if only it is the wrong thing, which I beleived it should be as there is no law that says if you choose me to provide a service to you and I cannot satisfy you, you should stick with me for the rest of your life.

Your contribution will be highly appreciated.

Thanks

[Bigboy]

Hi Yusuf,

I must say your frustration is almost palpable in your post; May be it will help if you give us a detailed account of your experience. Let us learn from it and hopefully respectable members of this forume might be able to share their own experience and lend some advice.

From the look of things and from feedback from most posts i have read on this site and other fora. It would appear that the conduct and practice of most stock broking firm leaves a lot to be disired

[c kenneths]

I must state here that I've been through this type of frustration coutless times and have decided not to change stockbrokers by stock transfer, this option is slow, inefficient and costly, however you can do this with stock tou intend to keep for a very long time.
Because of the bad tretment I receive from brokerage houses, I decided to leave all my holdings for the long term, just to minimise the hassles I go through in terms of inefficient stock brokers. Check out the thread on changing stockbrokers in this forum to see lots of advice I got when I was hit hard below the belt. Good luck.

[Soweto]

Originally Posted by Yusuf

Dear Respectable Member of this Forum,

It pained me when I think of what I am about discussing on this Thread.

The problem is: it is easier to pass through the hole of a needle than to change a broker in Nigeria. Why??? Is that the norm everywhere. Members that are abroad should confirm this to us if it is applicable everywhere.

Must we device means of forceful sales of our holdings with them at unfavourable prices if we are bent in changing them? In business, mistakes are allowed as you learn from them. But it seems mistake made in choosing a broker is a life time mistake which you may either have to contend with or burn your fingers to make corrections.

We all pass through this agony one way or the other.




Dear forum member, base on our strenght in this forum, I want to believe we can make an impact by suggesting what we need to do to change this urgly trend if only it is the wrong thing, which I beleived it should be as there is no law that says if you choose me to provide a service to you and I cannot satisfy you, you should stick with me for the rest of your life.

Your contribution will be highly appreciated.

Thanks

It is just unbelievable what is happening in that industry on our Beloved country,It is not the same everywhere like here in RSA,you can change brokers anytime,anyhow at no cost.i mean they are just there to obey you. i guessed is beacuse the Online share trading in Nigeria has been not extended to individaul investors, unlike here and most advance countries,whereby you can trade anywhere all over the world so long as you are connected to the internet.But I am still not sure there is a law in nigeria that gives them the right to be doing this. it is possible to come together thru the Forum and push the button.

[Geeman]

Previous posts on this forum discussed this problem. The conclusion was that the non-performance of stockbrokers is a general problem. Mine was so bad that when I went home recently I stormed their office and threatened to take my investment elsewhere. They kept my money in their account and ignored my instructions to buy for many months. I must say that things have improved since that episode. But the damage had already been done. As soon as I exhausted my money with them, I got a new stockbroker and like C Kennet, I decided to keep my stocks with my old broker for the long term.

[Yusuf]

Originally Posted by Geeman

Previous posts on this forum discussed this problem. The conclusion was that the non-performance of stockbrokers is a general problem. Mine was so bad that when I went home recently I stormed their office and threatened to take my investment elsewhere. They kept my money in their account and ignored my instructions to buy for many months. I must say that things have improved since that episode. But the damage had already been done. As soon as I exhausted my money with them, I got a new stockbroker and like C Kennet, I decided to keep my stocks with my old broker for the long term.

What should we do? Should we just accept our faith and keep looking? Lets get advice from gurus. We need to do something to remedy this urgly situation.

Over to you gurus

[whatsup]

I agree it is simply horrible.

As somebody who has experienced a change of brokers; you have 2 realistic options.

1) sell your shares and tell the old house to raise a bank draft to you/or the new broking house.

2) fill in all the correct forms get both houses to sign and it should take about 5 weeks. make sure your new brokers are h-o-t, so they can help monitor and speed up the process.

Either way, you need not settle for rubbish. You worked hard for your money. Pls do not let anybody abuse it.

[pumping]

I think we include the names of the stock broking firms where we have experienced problems with transfer of stock holdings. This will help us all im making future decisions. This should be the same for another other stock broker complaint.

Enjoy.

Pumping.

[Apache]

well, I moved my account from Mutual Alliance to zenith securities earlier in the year and the whole process took over a month (i think 6 weeks), during that period i could neither buy nor sell. my stockbrokers (zenith securities) said the delay was from CSCS and i want to believe them because those guys (Zenith securities) are wonderful. I couldn't believe i could get such good service after my experience with mutual alliance.
it's not like Mutual alliance are that bad, but they were too slow for my liking. It took them constant phone calls to make a buy or sell order and took a minimum of 3 days for the order to be effected. and funny enough, i realised that whenever they buy stocks for me, it's bought at either the closng price for the day or a price higher than that but never lower and when i am selling, it is either at a price lower than the closing price for the day or a price lower but never @ a peice higher than the closing price for the day
but with Zenith securities, everything is near perfect. I think they are the best in the country (personal opinion)

[MR. CEE]

Originally Posted by Apache

well, I moved my account from Mutual Alliance to zenith securities earlier in the year and the whole process took over a month (i think 6 weeks), during that period i could neither buy nor sell. my stockbrokers (zenith securities) said the delay was from CSCS and i want to believe them because those guys (Zenith securities) are wonderful. I couldn't believe i could get such good service after my experience with mutual alliance.
it's not like Mutual alliance are that bad, but they were too slow for my liking. It took them constant phone calls to make a buy or sell order and took a minimum of 3 days for the order to be effected. and funny enough, i realised that whenever they buy stocks for me, it's bought at either the closng price for the day or a price higher than that but never lower and when i am selling, it is either at a price lower than the closing price for the day or a price lower but never @ a peice higher than the closing price for the day
but with Zenith securities, everything is near perfect. I think they are the best in the country (personal opinion)

Apache, do they analyse stocks and offer suggestion on stocks to buy or sell what is their minimum to open an account.

[Apache]

they do but it's mostly in a general format like the type IBTC does. some of you would have seen their reports on Proshare.
their minimum to open an account is =N= 1 million which can be brought in either in cash or in stock value.
I forgot to mention that they do have some very pretty ladies there too lol!!! (abeg make una no vex, i be bachelor)

[pumping]

I feel you jare. Man shall not live by stocks alone se?

Enjoy.

Pumping.

[c kenneths]

Whatever you guys do, please dont open a stock broking account with Fidelity union securities, these guys are simply.......horrible will best describe them, for a list of reasons that are simply unprintable here, infact I will vote for them when an election will be done to select the worst stock broking firm in this country.

[Yusuf]

Dear forum member,

I found this and think it will be useful to all of us.

Copy this shortcut and paste in your browser

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Read

How to move your account from broker to brokerPosted Monday, October 29, 2007

By Bosede Olusola-Obasa

Having a sense of satisfaction or being firmly in charge of your stocks investment is as important as what you realise from your investments.

If you have been getting a contrary feedback from your stockbroker or finding it difficult to manage him, you have an option to disengage his services and findings show that this is quite an easy process.

Investors do complain about their inability to get on well with their stockbrokers, but what many do not know, perhaps, is that there is a platform to formally switch from their point of dissatisfaction to satisfaction.

Whatever you do, ensure that you can at least vouch for the integrity of your stockbroker as this forms the bedrock of doing business at the stock market.

Recently, an aged female retiree narrated how she had been having difficulty selling a particular stock through her stockbroker.

Since she could not get any reasonable results using the telephone, she had to visit his office on one of the floors of the stock exchange building over every detail in spite of her ailing health.

This scenario is just one of the reasons an investor may want to switch over to another stockbroking firm.

The Chief Operating Officer, Centre Point Investments, Mr. Jire Oyewale, notes that some of the steps necessary for such a change include writing a formal letter that is signed and addressed to the Director-General of the Nigerian Stock Exchange.

The letter will indicate your decision to transfer your account from a resident (current) stockbroking house to a target (new) stockbroking house.

The current Central Securities and Clearing System statement and inter-member transfer form wherein the details of stocks, that is, name of stock and quantity is obtained.

The investor will fill his portion of the inter-member transfer form and sign on investor’s portion.

The form is then taken to the resident stockbroking house for signature and stamp of the managing director and accredited representative of the company.

A fee of N200 is paid to the resident stockbroking house at this point.

The managing director of the target stockbroking house as well as an accredited representative will also sign the inter-member transfer form and affix the company stamp.

When this is done, all the documents will be taken to the stock exchange for processing.

He, however, adds that for a moribund resident house, a letter of indemnity will be done by the target house to notify the exchange on any loss or problems that might arise as a result of the transfer in future.

“It should be noted that a moribund house would not have an accredited representative or/and a managing director. In the past, N100 and N200 are paid to CSCS and NSE respectively to complete the process, but now the payment is debited at the end of the year to the concerned house,” he adds.

While he says that the process for opening a special account with the exchange vide CSCS is distinct from transfer of stock from one stockbroking house to another, Mr. Bimbola Olaniyi, who is Chief Operating Officer, Yuderb Investments and Securities Limited, says opening such special accounts can be another way of operating almost independent of stockbroking houses.

He says, “The beauty of it is that if any house has problem, you are not affected because the stocks are in the custody of the CSCS. You have a choice to sell with any broker.”

He notes that one important point in transferring one’s account is that one cannot do a partial transfer, it has to be entire.

On the whole, investors need to be vigilant and interested in what their stockbrokers are doing to avoid falling into traps such as unauthorised sale of stockholdings, short-changing on sales or purchases made on behalf of their clients or being cajoled to buy ‘bad stocks’ already warehoused to be offloaded and so on.

The following are pieces of advice from an investment summit tagged ‘Wealth for the Wise Seminar’ held in the Ibadan in March:

One of the best parameters for judging good stockbrokers is to rely on referrals from satisfied or dissatisfied clients of such stockbrokers. You can get this from colleagues, friends and family members who do business with such stockbrokers.

Do not use your stockbroker’s address as your contact or collection point when filling a form to buy shares as you will be displaying over-confidence in the stockbroker.

Be informed about prevailing prices when buying or selling your shares.

You should keep records of your stock holdings so that no stockbroker can take undue advantage of your equities.

It is very useful and important to verify your signatures immediately you obtain your share certificates and demobilise them and lodge them in the CSCS depository.

You should insist on getting your CSCS stock position monthly from your stockbroker, as this forms the final authority on your holdings on the NSE. - Punch

[Betiku Franklin Olugbenga]

Thank you Yusuf, good job

[Benjamin Dankwah]

Please members help me out from this problem. My broker is slow in effect transations, for almost one year now i submitted 5 different share certificates for verification, my borker has not effectively completed this job.
The same process whenever I drop money for buying stocks. I h ave spent
a lot transporting from east to lagos to visit their office, all to no avail. Now
am deciding to change my broker but afraid of their snail movement which may
take them one year to effect this change. please members in furom adivice me

[Naijadr]

much easier way (obviously extreme situation), sell off all your stocks, take the money and use that to open up in a new place