Since trading in shares entails a significant amount of money as investment, it is important for the investor to scout for the best stock broker since he/she will be responsible for one’s money.

Although many would cite price as the number one criterion in looking for a stock broker because admittedly there are many of them out there who really charge hefty fees for their services. That is a good thing to consider. But as they say you only get what you are willing to pay for. A cheap stock broker may not be as competent as the stock broker who charges a few dollars more in fees. The current prices of shares should not be the main factor to consider. You should be clear from the onset though about other fees that the stock broker plans to charge such as trading fees, initial deposits etc. There are also commission fees which are usually charged twice—when you buy a share and when you sell a share.

An equally important trait to look for is the competence and trustworthiness of the stock broker because as cited earlier he/she will be in charge of your hard-earned money so it is very crucial to find out if he is competent in the field and if he is worthy of your trust. A competent stock broker can double or treble your investments in no time as well because he/she knows the market and would be able to make wise decision or strategy on when and where to invest your money.

Your choice of a stock broker largely depends on what type of trader or investor you are. If you have a huge amount of investment, say over $100,000 to invest, you really need a topnotch stock broker and a full-service one. If you are an active or frequent trader, who is bound to do a number of transactions at a given time, you need to choose a stock broker who does not charge high brokerage costs. Watch out for special deals for frequent traders.

It is also advisable to check online list of stock broker or get referrals from friends who have dabbled in share investments. Some of the stock brokerage firms with a good array of stock brokers include OptionXpress, Muriel Siebert & Co., Wells Fargo, Firstrade, Charles Schwab & Co., Merrill Lynch, TD Ameritrade among many more. A reputable stock brokerage firm is important. Make sure that you are not dealing with a fly-by-night company. Do your homework. Research, compare, and then choose.

Once you have chosen or shortlisted stock brokers, it is best to talk to each one of them on the phone. Ask all the questions you have in mind and raise concerns that you may have. Discussing all of these will help you assess the stock broker’s qualifications. A good stock broker would want to know your investment goals or objectives and would then propose an investment plan or strategy customized for you.

About The Author

Hattie Williamson