What an investment broker does
- Understands your goals. Retirement, education, a property deposit or growing wealth, and when you will need the money.
- Assesses your risk. How much short-term movement you can live with, and how much risk you need to take to reach your goal.
- Chooses the right vehicle. Unit trusts, tax-free savings, retirement annuities, endowments, offshore investments or living annuities, each with different tax rules and access.
- Selects the funds. A mix of fund managers and asset classes matched to your risk profile.
- Handles the admin. Applications, debit orders, switches, beneficiary nominations and tax certificates.
- Reviews every year. Rebalancing as markets move and as your life changes.
Independent broker or tied advisor?
A tied advisor works for one investment house or bank and can only recommend that company's funds. An independent broker can compare options across many providers, which gives you a wider choice and advice that is not driven by one company's product list.
Either way, the advice must be suitable for you, and the reasons must be recorded in a Record of Advice. Read our own Record of Advice on the various ways to invest.
How investment brokers are regulated
Anyone giving financial advice in South Africa must be authorised by the Financial Sector Conduct Authority (FSCA) under the FAIS Act. Authorised providers have an FSP number you can look up on the FSCA website, must meet fit and proper requirements, and must disclose their fees and any conflicts of interest.
Deacon and Associates CC is FSP 3434. Our statutory disclosures and conflict of interest policy are available on this site.
How investment brokers are paid
Investment advice is usually paid through an advice fee agreed with you upfront: an initial fee when the investment is made and an ongoing fee for annual reviews, both normally a percentage of the investment value. Separately, the platform and the fund managers charge their own fees.
How to choose an investment broker
- Check their FSP number on the FSCA website.
- Ask whether they are independent, and which investment houses they use.
- Ask how they decide on your risk profile and fund choice.
- Make sure all fees are disclosed and explained.
- Ask how often you will meet, and who you will deal with each year.
See also the benefits of using an independent broker and unit trust vs retirement annuity.
Frequently asked questions.
Is an investment broker the same as a financial advisor?
The roles overlap. A financial advisor gives advice across your whole financial plan, while an investment broker focuses on choosing and placing investments. Many independent brokerages, like ours, do both.
Do I need a lot of money to use an investment broker?
No. Many investments can start with a monthly debit order. A broker helps you choose the right vehicle from the start, which matters more than the amount.
Can a broker manage investments I already have?
Yes. We can review your existing unit trusts, retirement annuities or endowments, and recommend whether to keep, switch or consolidate them.
How do I check that a broker is licensed?
Ask for their FSP number and look it up on the Financial Sector Conduct Authority website. Deacon and Associates CC is FSP 3434.