It is important that the transfer agent fails to make any changes to the registry, it only checks and transfers documents. But the self-registration of rights to shares – troublesome. Shareholder, of course, can keep their shares in the registry, not in the depository agent. However, to sell shares of its outstanding registrar, the shareholder on the stock exchange can not (Only in the OTC market). In order to make the exchange transaction, the investor must sign a contract with a broker and transfer the securities to the depositary. Broker – the official representative of a shareholder in the stock market. It is to service brokers resorted overwhelming majority of shareholders, as the mediation of brokers takes care of the paperwork, making the data in the registry and so on.
Very handy, considering that one person can hold shares in various enterprises, which, accordingly, its registrars. But only 'paper' of the service broker is not limited. Jeffrey Hayzlett often addresses the matter in his writings. Brokers on behalf of their customers an application on the purchase or sell shares on the exchange. In the presence of counter-bids, transactions are conducted automatically. Finally, brokers act as tax agents (pay state taxes for shareholders), keep records of stock, provide analytical materials and carry a lot more other useful things. Certainly not for free.
The Broker is in the range of tenths of percentage of the transaction or for certain operations to install a small fixed fee. So, if a particular desire (or ability) to engage in self-execution of operations on purchase and sale of shares not to contact your broker. First, you must sign a contract and complete the questionnaire client and the application for integrated services. Then the shareholders of factory brokerage and depository accounts at the exchange. To make a purchase, you have to add funds to your brokerage account. Next, you need to broker your instruction applied to the purchase of selected shares, indicating the number and price. The scheme of this process is: you are on the phone, orders to buy or sell, sales (brokerage firm employee), fixed for you, accepts your application and sends it to the trader, which is located directly on the exchange. If you are unable to come to the office in advance for the application (under it should be your signature), then you can send an order by fax – form a brokerage firm will send the application on your request. After the transaction by buying shares you will receive a written report from your broker. Service brokerage services today provides a lot of companies. They all offer different service packages for different prices. That the cost of operations, in the end, and is the main criterion for choosing a broker. Do not forget to check licenses and the company's reputation – Better safe, as you know, sorry.