10 Tips for Choosing a Stock Broker
For a long time everyone has been telling you should invest in this or that, but the problem you had was not investing it was how to start. Well at least that was the problem I had before I got started. And, I am pretty sure some of you had the same or similar problem. My personal experience and an email that I received from a friend about learning how to invest led me to create this post. A post that offers 10 tips on how to choose that stock broker that is perfect for you.
Discount vs. Full-Service Broker
A discount broker is a broker that offers very little any advice and only gets commission from purchases. A full-service broker offers more investment assistance, but at some fee. So if you are a person that might need help with you investments, then a full-service may be the better choice. However, if you plan on making all the decision by yourself than a discount broker may be the better choice for you.
Broker Accessibility
Can this broker be reached easily, if not will there be someone cover for him or her. On a real busy trading day it is very significant to know if you broker can be reached.
Shop Around
Meet several brokers and talk to them. It is very important for you to build a rapport with them and to feel very comfortable. This person will be handling your money and investing it, so it won’t be a good idea if you feel intimated by him or her. If that is the case find someone else.
Get Referrals
Do some research and find out which brokers other people used and why they choose them. It’s always advisable to work with someone you heard good things about.
Broker that understands your needs
Having a broker that really understands your financial goals and needs can be very beneficial. They should be able to determine which investments best suit your needs and what type of investor you are; conservative, aggressive or somewhere in-between.
Background Research
Find out the brokers background and strategy. Make sure they are properly licensed, and then find out about his or her experience, training and certifications. After that determine their technique towards investing and what criteria they use to make their decision.
A Broker With Your Interest In Mind
Some brokers may persuade you to investments that may give them higher commissions, but don’t give you any value. If the broker acts like he or she is offering a “sure thing” be very suspicious. Stocks are never a guarantee.
Defining Commission Fees
Find out what are the commission fees and how are they determine. Make sure you obtain a fee schedule that details are their fees. Keep in mind that an annual fee, rather than a transaction-based fee, can eliminate "churning," a practice whereby a broker is running up commissions by making unnecessary transactions.
Additional Charges
Discover all additional fees and charges you will be expected to pay.
“Deep Discount” Brokers
Be cautious when you hear of “Deep Discount” brokers. Only use ones that are reliable and that you heard someone else uses them. And, remember always read the fine print. Lastly, if you do end up with someone you really are not satisfied with, you can always change.
If you have any other helpful tips or advice, please post them in the comment section. Thank you.
IM Post to a Friend!
A discount broker is a broker that offers very little any advice and only gets commission from purchases. A full-service broker offers more investment assistance, but at some fee. So if you are a person that might need help with you investments, then a full-service may be the better choice. However, if you plan on making all the decision by yourself than a discount broker may be the better choice for you.
Can this broker be reached easily, if not will there be someone cover for him or her. On a real busy trading day it is very significant to know if you broker can be reached.
Meet several brokers and talk to them. It is very important for you to build a rapport with them and to feel very comfortable. This person will be handling your money and investing it, so it won’t be a good idea if you feel intimated by him or her. If that is the case find someone else.
Do some research and find out which brokers other people used and why they choose them. It’s always advisable to work with someone you heard good things about.
Having a broker that really understands your financial goals and needs can be very beneficial. They should be able to determine which investments best suit your needs and what type of investor you are; conservative, aggressive or somewhere in-between.
Find out the brokers background and strategy. Make sure they are properly licensed, and then find out about his or her experience, training and certifications. After that determine their technique towards investing and what criteria they use to make their decision.
Some brokers may persuade you to investments that may give them higher commissions, but don’t give you any value. If the broker acts like he or she is offering a “sure thing” be very suspicious. Stocks are never a guarantee.
Find out what are the commission fees and how are they determine. Make sure you obtain a fee schedule that details are their fees. Keep in mind that an annual fee, rather than a transaction-based fee, can eliminate "churning," a practice whereby a broker is running up commissions by making unnecessary transactions.
Discover all additional fees and charges you will be expected to pay.
Be cautious when you hear of “Deep Discount” brokers. Only use ones that are reliable and that you heard someone else uses them. And, remember always read the fine print. Lastly, if you do end up with someone you really are not satisfied with, you can always change.
If you have any other helpful tips or advice, please post them in the comment section. Thank you.
1 Comments:
A good stockbroker provides free, advanced and powerful investing and research tools and facilities in exchange of lowest trade commissions. The facilities and tools may include one-click trading center, scheduled investment service, free dividend reinvestment service, free streaming quotes, free access to market scans, stock news and historical stock charts, ETF research facilities, hypothetical portfolio tools and technical evaluators. The stock and market news, including company press releases and newswires, allow you to keep track of your investments and keep abreast of the latest market developments.
Fast order execution is key to successful trading and investing. Imagine a situation where you have placed a buy and sell order at a particular price and keep waiting for 'ages' for its execution. By the time it is executed, the price scenario has already changed to your detriment. A good brokerage firm like Sogotrade provides latest trading technology, platform design and infrastructure for instant, high quality order execution on a consistent basis.
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