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5 Tips for Choosing an Investment Broker

May 23, 2011

investment broker

You work hard for your money, and now you’re ready to make your money work hard for you, right? So where do you begin? How do you sort through all your investment options so that you know where to put your money? There are so many investment vehicles out there that it is easy to get caught up in the whirlwind and leave with your head spinning. Your best bet is to seek professional help. After all, you wouldn’t perform a surgery on yourself, would you? By the same token, you also wouldn’t let a doctor you haven’t researched take his scalpel to you either. Right? Finding the right investment broker for you is a serious undertaking, and should not be taken lightly. Here are five tips for choosing an investment broker:

  1. Look for a broker who is compatible with your personal investing style. Decide if you’re interested in holding on to long-term investments or if you’d rather play the market more actively, trading on a short-term basis, and choose a broker who specializes in your particular trading philosophy.
  2. How experienced are you? If you’re comfortable enough with your knowledge of investments to do your own research, then you may want to go with a discount broker. If you’re new to the world of investments and need full guidance, go with a full-service broker.
  3. Remember that stock market numbers change at lightning speed. Any broker you choose should be able to ensure you that they are working with real-time numbers, or else you run the risk of missing the boat on trades.
  4. Assess the broker’s costs and fees. Remember that there will be a start-up cost for working with any broker, but that there are also circumstances where you will be charged additional fees. If you aren’t aware of all of these fees up-front, you could end up unknowingly losing a lot of money.
  5. Look into a broker’s customer service reputation. The fact of the matter is, no matter how good or knowledgeable a broker is, he is no good to you if he can’t be reached or if he doesn’t respond to your requests in a timely manner.

There are so many brokers out there competing for the chance to invest your hard-earned dollars. What’s more, there are so many different ways to invest. Be sure to protect your investment by doing your research and asking the hard questions. Your bank account will be happy you did.

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