How to Choose a Broker

Learn what to look for when choosing a broker!

Instructions

Difficulty: Moderate

Things You’ll Need:

• Patience

1. The first and most important thing in choosing a stock broker is to first realize what kind of investor you are. Ask yourself these questions: 1) Why am I looking for a broker? 2) What kind of invester do you want to be? Do you want to be conservative? Do you want to place your money in stocks that are safe with a slow but steady return? Or are you an aggressive investor? Do you want to place your money in stocks with a larger return that has a higher chance of failing? Always be sure before meeting with a new broker you know exactly what kind of investor you want to be. If your not sure however, a good broker will show you your options and point you down the right path.
2. The 2nd most important thing is the meeting. When you meet with the new broker tell him/her what exactly you want. Tell them your purpose. Ask questions about diffrent options that are right for you and be sure they NEVER pressure you into something you are uncomfortable with.
3. Ask the broker to give you refrences and use them! In the end when you have made your decision and your money is invested you should feel good about your decision. Remember the most important step is to always ask questions and be sure your broker can explain in a way you understand.

Tips & Warnings

• Always ask questions!
• Beware of any individual who explains things in ways you don't understand. They may not have enough experience to break every step down for you, or may just not care if you don't understand!