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Difference between Broker and Remisier

A question that future investors usually have is what is the difference between Broker and Remisier? This is actually a rather inaccurate question. The question should actually be, “What is the difference between a Dealer or Remisier?”  

If you would like to find out how to buy stocks in Singapore, and start making some passive income in Singapore, you would have to open a brokerage account. When you open a brokerage account, the brokerage house will usually ask if you would like to have a broker? What they are actually asking is if you would like to have a Remisier to service you? With the other option being having a Dealer.  

What is the difference between a Dealer and a Remisier?  

A Dealer is an employee by the brokerage house who draws a basic salary with additional commission drawn from the trades he executes for clients. A Remisier is an self-employed agent tagged to the brokerage house whose income depends solely on commissions from the trades he executes for clients.  

Both Dealers and Remisier are essentially salespersons, just that Remisier are more of a salesperson than Dealers as their income depends on their sales. Both Dealers and Remisiers are allowed to provide stock advices to clients.  

The next question to have is, should you have one? Let’s discuss the pros and cons of having Dealers or Remisiers executing your orders.  

 difference between broker and remisier

Pros 

One positive point of having a Dealer/Remisier is that, you have a staff to service you should you require any assistance on your account. Otherwise, you would have to rely on call centres for assistance. Oh boy, it’s everyone’s favourite pastime hobby to be talking to an answering machine.  

Dealers and Remisier are also allowed to provide advice and recommendations to you, therefore, the development of a relationship with a broker can also be useful for networking. As your Dealer/Remisier will be able to provide you with investment tips and opportunities that you would otherwise have missed out in your daily life.  

When you place a trade, especially if it is a large trade, the investor in you can rest assured that you have someone that will ensure that the trade is filled. You would not have to monitor your order constantly to ensure your trade is filled. Afterall, you are paying them commission.  

Not much of a Pro, however, in the event that you incur losses in your margin account, the Dealer/Remisier would have to liquidate your positions unless you inject more cash into your account. If you have developed a relationship with your Dealer/Remisier, you can have more negotiating power and work out something with your Dealer/Remisier.  Having someone to talk to is always more assuring than having to deal with a random staff from the brokerage house in times when you have a margin call.  

 

Cons 

A Dealer/Remisier is afterall, still a human and humans makes error. Therefore, it is entirely possible that your Dealer/Remisier place a wrong order or forgets to place your order for you. This will surely annoy many.  

As Dealer/Remisier are essentially salesperson, investors should also exercise caution over the advice and recommendations given by them as you will be investing with your own monies. If you do not know what to invest in, it is always better to stay out of the market. The stock market is a ruthless machine, investors has to be educated in stock market and know what to look out for in their investment story.  

Overall, there is not much cons in having someone to service you as you are already paying commission when trading. With or without a Dealer/Remisier, an investor has the option to place their trade through the online platform of that most brokerage houses now have. However, in the case, if you still prefer of going through the old-school way of calling in to place your trade, the commission will be much more expensi seeve.  

All in all, with or without a Dealer/Remisier, investors should always be educated on how to invest and know what they are getting themselves into before making a trade. If you are looking for investment in Singapore for beginners, and are interested in learning how to make money safely and consistently from the stock market, check out Supercharge Investing Acceleration Program. SIAP is a Skillsfuture credit claimable 2-day workshop that teaches students how to perform fundamental analysis on stocks and ultimately, decided whether to invest in certain stocks. Moreover, SIAP will also be teaching options strategy, a derivative which combines investing and options to increase your return on investment. If you are interested, check out SIAP now.

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