What To Look For In A Stock Brokerage Firm

Feb 17 09:19 2011 Tom A Lingle Print This Article

Before you search for a stock brokerage firm you need to know yourself. Will you be investing for a retirement fund or a more short term goal? Can you spare the money needed for most minimum accounts? Do you have the time to keep up with your portfolio or will you be leaving the decisions to a professional? Do you have a time limit to reach your goal? Lastly, how much money can you spare to invest? Prepared with answers to those questions, you're ready to do some research.

Get online to compile a list of stock brokerage firms large and small. You'll be looking for things like whether they are a discount or full-service firm. You'll need to know the firm's licensing,Guest Posting background, good standing in the community and customer referrals. This is the step in which you need not be afraid to ask questions; after all, these people have your money and you should know something about them. Now would be the time to research the forums and blogs regarding the company for any hint of adverse opinion.

Next you'll need to meet with a stock broker with the firm you've chosen. You'll need to know how he thinks so he'll do the best job he can for your portfolio. Some investors are conservative, some aggressive so you'll need to know your stock broker understands your needs, goals, budget and how you want to get there. This is where the full-service broker will research investments, make them, give you a report on your portfolio and tell you how well your portfolio is doing. The discount broker will listen to your ideas, choose your stocks and make the investments, but he won't monitor your portfolio because you'll be doing that yourself. He'll do what you tell him to do, but you'll be doing the research and monitoring.

Choosing a stock brokerage firm is also about the fees. Discount brokerage firms won't charge high fees, nor will they charge outrageous commissions. With the traditional stock broker, you will pay fees for the research, investing and monitoring services. There are also fees if the account is inactive in addition to maintenance fees and annual fees. Read all the paperwork to make sure you budget the fees.

Some stock brokerages firms offer options such as stocks, bonds, foreign currencies, commodities, futures and mutual funds among others. Some offer money management in which the client receives a Visa check card with which to make withdrawals from his account. An asset management account is also on offer in addition to retirement funds and trust funds.

Choosing a stock brokerage firm is about research. Know what you need and who is best able to help.

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About Article Author

Tom A Lingle
Tom A Lingle

Investing in the stock market requires the assistance of a stock broker to facilitate your trades. Find the right full service or discount stock broker to help you manage your investing.

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