How to Find a Good Broker
Finding the right broker can seem like searching for a needle in a haystack, because there are so many vying for the same business. However, a few basic tips and guidelines can help you find the right person to suit your specific needs and goals. While it may take some time and a bit of patience, locating a broker to help with your mortgage or investments doesn't have to be an overwhelming task.
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Instructions
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Determine what your exact needs are in a broker. Obviously, brokers who deal with stocks are different from mortgage brokers, but there are more defined types within those categorizations. Are you looking for a Forex investment broker for currency trading or a broker to trade stocks and bonds? If you are seeking a mortgage broker, are you specifically interested in houses, foreclosure properties or commercial property? While this may seem a bit obvious, knowing exactly what you are looking for before you set out will help in your search.
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Ask friends and family if they know a good broker who does what you are looking for. Chances are, somebody you know has a broker whom the person thinks is doing a good job. You will still have to set up a consultation, but a referral from a trusted friend or family member can be helpful.
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Check the North American Mortgage Brokers Association's website (see Resources) if you are looking for a licensed mortgage broker in your state. You can search for free on the site.
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Set up a consultation with a broker whom you are thinking about hiring and discuss your personal needs. Make sure you ask for documentation of the broker's certification and state licenses, as well as his experience in the field. If you are hiring a stockbroker, you also need to discuss the commission rates and flat fees as well as the broker's typical investing strategy.
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Check your potential broker's background on the Financial Industry Regulatory Authority's website (see Resources), which lets consumers look up the background of any broker or brokerage firm, including any judgments or liens.
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Tips & Warnings
You should feel comfortable talking with your broker during your conversation. Otherwise, the relationship may not be beneficial for either of you.
Just because a broker is successful doesn't mean the person's right for you. Your investing styles need to be the same. Don't feel pressured to hire a broker with an aggressive investing style if your main goal is to safeguard your money. Also, don't hire a broker with a less aggressive style than you would prefer. Don't settle. There are other brokers out there.
References
Resources
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