How to Choose a Stock Broker

Investing in stocks should be part of your overall financial plan. Whether for your retirement years or day trading some up-front information is essential in choosing the right broker for your needs.

Difficulty: Moderately Easy

Instructions

1. Build a list of potential brokers. Many names are part of the culture. Take Merrill Lynch and TD Ameritrade, two well known companies. One gives full service the other discount. Choose a name with a good history. Read the reviews for stock brokers at the consumersearch website.

2. Compare minimum cash needed to open an account. This varies from several hundred to several thousand dollars. Analyze your personal financial situation and how much money you have to put upfront.

3. Determine the type of investments you want to make. Stocks, mutual funds, bonds, options are some main choices. Look at your potential list to see which company offers the right investment vehicles.

4. Pick a full service broker. Their service costs more but for the most part leaves investment decisions with the broker. See the customer ratings before you apply. Merrill Lynch, Morgan Stanley and UBS are a few of the big names. See the annual full-service rankings at the smartmoney website.

5. Choose a discount broker. Make your own investment decisions with a discount online broker. Save money on commissions and fees. Look at the big names and compare, such as TD Ameritrade, E-Trade and Scottrade.

6. See how much each stock order costs. Online trades are less expensive. A broker assisted trade is much higher per transaction.

7. Check out additional fees. These range from inactivity fees to maintenance fees. Each stock broker will list their fees and all have websites containing this information.

8. Think about the services you want. Level II quotes, interactive charts, streaming news, check writing and research are good tools for the investor.

9. Look at local office locations. Make sure an office is reasonably near your home, more so with a full service broker.

10. Talk to your potential broker on the phone. Prepare questions in advance and get a feel for the person. Choose a firm that you can rely on and trust.

Resources

• Read the broker reviews at consumersearch.com
• See full service rankings each year at smartmoney.com

[jbowyer]

on 1/5/2009 3. Do I need to explain to you why TradeKing would behave this way? They’re just following orders from my former employers, the international Mafia, who is responsible for the world’s current credit crisis.


Jeffrey W. Bowyer
[e-mail]

[jbowyer]

on 1/5/2009 2. According to my TradeKing statement for the monthly period ending December 31, 2008, I received a dividend on two different funds from the “Rydex” family of funds:

12/05/2008 DIVIDEND RYDEX SERIES FUNDS
INVERSE NASDAQ 100
STRATEGY FUND CLASS C
Amount: XXXXXXXXXXXXX

12/05/2008 DIVIDEND RYDEX SERIES FUNDS
INVERSE S&P 500 STRATEGY
C CLASS
Amount: XXXXXXXXXXXXX


Although I *never* told TradeKing to reinvest dividends for either of these funds, my account statement shows that TradeKing reinvested the dividend for only one of the funds:

12/05/2008 REINVEST DIV NUMBER OF SHARES BOUGHT: XXXXXXX RYDEX SERIES FUNDS
INVERSE S&P 500 STRATEGY
C CLASS
REINVEST AT 49.720
Amount: XXXXXXXXXXXXX


Of course, the reinvestment price of $49.72 per share is significantly higher than my average share price for this fund, so the reinvestment is not good for me.

3. Do I

[jbowyer]

on 1/5/2009 If you ever wonder how the Credit Crisis could get so far out of control, you’ll find a perfect example in the corrupt folks at online stock and options broker TradeKing (www.tradeking.com), who continue to follow orders from their Mafia handlers. (See my previous message about TradeKing’s meddling with my accounts.)

1. When I inquired about TradeKing’s policy regarding dividend reinvestment, they responsed:

Dear Mr. Bowyer,

Thank you for contacting TradeKing.

You are correct. Accounts are by default setup to receive cash dividends and to not have them reinvested. To add dividend reinvestment (DRIP) to your account or a particular security, you simply need to send us your request by email.

Best regards,

Chris Lebhar
Electronic Customer Support
TRADEKING
5455 N. Federal Hwy, Suite E, Boca Raton, FL 33487
[phone]


2. According to my TradeKing statemen

[OnlineBrokerRe]

on 11/23/2008 I did step 1 and opened many brokerage accounts. Then I made a website to review each one. Save yourself a lot of hassle by avoiding some of the worst brokers out there and check out my website http://onlinebrokerreview.blogspot.com/

[OnlineBrokerRe]

on 11/23/2008 I did step 1 and opened 8 brokerage accounts. Then I made a website to review each one. Save yourself a lot of hassle by avoiding some of the worst brokers out there and check out my website http://onlinebrokerreview.blogspot.com/