Dealers are crucial figures in the foreign exchange market. They make trades in securities, buy and sell financial instruments, and offer investment advice to investors. That’s why dealers are often the last bid and offer the offer prices you see when you lookup up the price of a particular security on the over-the-phone or online stock market exchanges. When you’re shopping for a new broker, one of the first things you should ask him or her is about their dealer relations.
A good dealer knows his/her customers and how to work with them. If a broker doesn’t offer you any assistance when you need it, or doesn’t even return your phone calls when you need to discuss a specific trade, you may want to consider another dealer. While some traders only sell standard securities and do not give personal advice, there are others that will sit down with you and discuss individual securities and options with you. It’s important for your personal comfort as well as to give you the right information you need about the particular types of securities or options you might be interested in trading.
The Federal government requires all registered dealers to be registered with the SEC (securities Exchange Commission). This group of U.S. securities dealers is known as the National Association of Securities Dealers (NASD) and is composed of Broker Dealers nationwide. To become a member of this group, brokers must meet a minimum qualification, such as at least five years of experience. To become a Broker Dealer, you will be subjected to an extensive examination from the federal government’s Federal Security Exchange Commission (FSEC). Broker dealers are subject to oversight by the federal government and are expected to meet high standards of integrity, ethics, and performance.
In contrast to the auto dealer, who is just acting as a middleman between you and the manufacturer, the auto broker is an independent sales person that has developed a relationship with the manufacturer over a period of time. The role of the auto broker is much more complex because they meet with potential customers and help them make their decision. They are also often consulted on important but confidential issues such as financing plans, trade-in value and possible leasing agreements. In order to qualify as a Broker Dealer, a dealer must also have had successful sales experiences in the past and meet other criteria set forth by the industry regulators, including completion of an accredited dealer of record. Broker dealers can also be accredited by the National Association of Insurance Commissioners and the Financial Industry Regulatory Authority.
Many people wonder why a “deal killer” would want to be associated with the financial professional industry when they are not selling cars. The truth is that the dealer works for the manufacturer and is answerable to the manufacturer. Dealers play an important role in educating potential consumers as to the features, benefits, and risks of certain products. They also provide advice to those who are considering purchasing a new vehicle based on their financial situation. Finally, dealers can assist individuals with their FICO score needs and help them to understand why it may be beneficial to refinance their current loan.
If you are considering buying a new car, but you do not know if you can afford a new car, a dealership-installed credit guide can help you determine what your monthly payments will be. By researching different dealerships in your area, you will be able to determine whether you will be better served by going through a dealer or going through a private party lender. You should also research your options with new car warranties and extended warranties to determine which options will be best for your particular situation. Once you understand your monthly payment budget, finding the right financing plan can be easy.