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STOCKBROKERS - how to lose money!
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tyrell_2
Posts: 4 Newbie
I used some of my savings to buy some shares through a stockbroker - the company is Rathbones. In 8 years my shares are worth £5,000 less with an initial investment of £25,000 Their attitude is I am a small time investor so maybe I should go elsewhere.although they did agree that the results were 'probably' less than satisfactory!!!..Not sure what I can do next but I do think in any other business this would not be acceptable and it does make me think who else are they conning
I think my concern is it was a discretionary account (ie they had control) of medium risk. I advised them I wanted to go for capital growth and would not need income for it. I am paying a management fee for this service on a monthly basis. I have been advised that the performance 8 years investment with a £5000 loss on a capital of £25000 is bordering on mismanagement compared to other investment houses. I know some people punt on shares but I did not feel I had the experience of knowledge to do this - hence I went to Rathbones! I guess I am also sharing my experience with everyone also - as I feel they sold me a great story of capital growth and the reverse has happened!
I think my concern is it was a discretionary account (ie they had control) of medium risk. I advised them I wanted to go for capital growth and would not need income for it. I am paying a management fee for this service on a monthly basis. I have been advised that the performance 8 years investment with a £5000 loss on a capital of £25000 is bordering on mismanagement compared to other investment houses. I know some people punt on shares but I did not feel I had the experience of knowledge to do this - hence I went to Rathbones! I guess I am also sharing my experience with everyone also - as I feel they sold me a great story of capital growth and the reverse has happened!

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Sadly the stockmarket has been going down over the last 5 years, perhaps you would be happier with your money in a building society investing is not for the risk averse....0
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A discretionary management service on £25k is a bit of a waste of money. The fees would almost certainly be too high to make it worthwhile. You need a fair bit more than that. Probably why they suggested you look elsewhere.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Sadly the stockmarket has been going down over the last 5 years
Not sure what that has to do with a 'Discretionary Management Service'...........there are other things that a Stockbroker can invest your money in other than Equity Stock.less than satisfactory!!!
Doesn't begin to describe it.............a half trained monkey could have done better for you !!!!'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
As a matter of interest, exactly what stocks are in your portfolio?
Also, how many of each (approximately) and what were the exact dates they were purchased and at what prices?
This is a peculiar time of year for the stock market and I'm sure you've heard the expression, "Sell in May and go away"? One of the main reasons for the expression is that the market is particularly volatile at this time of year.
Things might not be as bad as you think but I'd like to have a look at the Technical Analysis Charts for each stock before making a further comment.0 -
in 8 years!!! thats shocking,. you should pull your money out, its crazy,
ive worked out :rolleyes: in the forex market a solo pro-broker could turn over 800£ min per month on 20k account which is 20pips per week!! which is easily achieved, based on using 50% of the account to trade with (and the other 50% for margin call protection),
a proper forex fund manager firm would offer you 12% return per month thats £2400!
based on what your saying Rathbones took you for a costly ride,
just wondering how it took 8years for you to find this out ???
agree with DocProc ,.. and how much fees where u paying, aswell ?0 -
Not sure what that has to do with a 'Discretionary Management Service'...........there are other things that a Stockbroker can invest your money in other than Equity Stock.
Depends entirely on what the discretionary service was - could have just meant the manager had discretion to pick stocks but within an agreed equity universe.0 -
No help to OP, but a bit late to realise that Woody Allen had it right
"stockbroker is someone who takes all your money and invests it until it's gone"
As other say, better off elsewhere, if you are unsure then a general world wide Investment or Unit Trust would be one homeEight out of ten owners who expressed a preference said their cats preferred other peoples gardens0 -
Depends entirely on what the discretionary service was - could have just meant the manager had discretion to pick stocks but within an agreed equity universe.
No it doesn't.'In nature, there are neither rewards nor punishments - there are Consequences.'0
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