Choosing A Stock Broker
If you have money to invest and you have considered putting your money into stocks or bonds, then finding a stock broker is essential for you. Broker fees, however, can add up and not everyone receives the same amount of service from broker to broker.
Still, if you are considering investing your monies beyond your retirement fund or bank savings account, then purchasing stocks and bonds could help you build wealth. Let's take a look at all that is involved in finding a qualified broker.
Minimums: Some brokers will work with you as long as you meet a certain minimum investment requirement such as $500 or more. Thresholds can be higher with $1000, $5000, even $10,000 or more being the minimum balances. Other brokers will be satisfied with any investment amount or simply require that you open up an individual retirement account to have access to their services.
Fees: Paying out fees for investing purposes is common when using a broker. Maintenance fees are typically waived if you keep a certain minimum balance while purchase fees can vary from $4 to $20 per transaction.
Some other fees to be on the watch for include: transfer fees, IRA custodian fees, annual fees, and fees for not maintaining a balance. Fees could make up a significant part of your expenses; make certain that you understand what you entering into before committing your funds to a broker.
Service: Even with online brokers, customer service is very important. Can you find everything you want online without clicking through numerous pages each visit? Is the user interface user friendly? Finally, can you get live help in the event of some sort of problem with the site or to talk with a broker specifically about a stock, bond, IRA, etc.?
If working with a broker in person, will you be acknowledged as a valued customer or will you be treated simply as just another person in a sea of brokerage customers? Perhaps in exchange for paying higher fees, a lower level of customer service is fine with you. However, if not, will you tolerate minimal service?
Extra Services: Many brokerage houses provide services beyond stocks, bonds, and IRAs. Consider using a broker who also offers credit cards, direct deposit, ATM cards, check writing with bill payment, and more. You may find that these extra services will pay for themselves in the form of one less monthly banking fee.
Finally, find out as much information as you can on a broker before signing up. Price isn't everything and switching to another broker later on can be a hassle that you don't want to have.
Still, if you are considering investing your monies beyond your retirement fund or bank savings account, then purchasing stocks and bonds could help you build wealth. Let's take a look at all that is involved in finding a qualified broker.
Minimums: Some brokers will work with you as long as you meet a certain minimum investment requirement such as $500 or more. Thresholds can be higher with $1000, $5000, even $10,000 or more being the minimum balances. Other brokers will be satisfied with any investment amount or simply require that you open up an individual retirement account to have access to their services.
Fees: Paying out fees for investing purposes is common when using a broker. Maintenance fees are typically waived if you keep a certain minimum balance while purchase fees can vary from $4 to $20 per transaction.
Some other fees to be on the watch for include: transfer fees, IRA custodian fees, annual fees, and fees for not maintaining a balance. Fees could make up a significant part of your expenses; make certain that you understand what you entering into before committing your funds to a broker.
Service: Even with online brokers, customer service is very important. Can you find everything you want online without clicking through numerous pages each visit? Is the user interface user friendly? Finally, can you get live help in the event of some sort of problem with the site or to talk with a broker specifically about a stock, bond, IRA, etc.?
If working with a broker in person, will you be acknowledged as a valued customer or will you be treated simply as just another person in a sea of brokerage customers? Perhaps in exchange for paying higher fees, a lower level of customer service is fine with you. However, if not, will you tolerate minimal service?
Extra Services: Many brokerage houses provide services beyond stocks, bonds, and IRAs. Consider using a broker who also offers credit cards, direct deposit, ATM cards, check writing with bill payment, and more. You may find that these extra services will pay for themselves in the form of one less monthly banking fee.
Finally, find out as much information as you can on a broker before signing up. Price isn't everything and switching to another broker later on can be a hassle that you don't want to have.