Investing In Stocks/bonds And All That Jazz...


Jul 20, 2010
I have a small sum that I would like to invest in the local market. I have zero experience in this kind of thing and wondered if anyone is able to recommend an honest broker for a first timer like myself. Also, if anyone has any links to any useful sites or advice in general then that would also be gratefully received.
Our neighbour tried to sell us a sort of life insurance from MedLife which is more of a sort of investment.
Basically, you subscribe for a 10 years period, you pay a monthly quota (around 50 USD, depending on your age, health status, etc) and you will have a guaranteed yield of 4% (or more, depending on some parameter I forgot about). Plus, if anything happens to you, you will get reimbursed (a ridiculous amount, like 20k USD in case of death). I was explained this is simply a mean to save and invest in USD legally while earning in pesos.
My advice is to not invest in the local market if you wish to keep your money. After government meddling in public companies, specifically YPF, buyer beware. If however you do chose to gamble over here, some guidelines to follow and questions to ask when choosing a broker are as follows:
- What are the overall costs - monthly fees, data fees, transaction fees to buy and sell
- What are the limitations placed on withdrawing your money
- Does the broker support the transfer of share certificates internationally - this is important should you wish to take your money out of the country at a later point in time - CEDIN & CDRs
- Does the broker provide a discount service and transactions online? you want an online service where possible so that you can access and trade your shares from anywhere in the world.
- If margin is offered, what are the interest rates?
- When shares are purchased through the broker, are they just on loan to you or are they registered in your name.? This is important because some brokers take ownership and just 'pseudo' rent the shares so if the broker becomes insolvent and the shares aren't actually registered to you, you lose control and will not be able to recover your investment.

Good luck, you'll need it :)
Stay away from the local market for now. A small sum to invest is not enough to get the advisors attention and you become fodder. Keep in mind that there is no market on the planet where the small guy gets a fair shake. Didn't used to be that way.