Thursday, March 8, 2007

How to Size up A Broker

One of the many great things that the Internet has done is move the power from industry specialists to the average person (assuming they are willing to fire up google and put in some time). Now I'm not implying the internet will allow a person to become a specialist at anything, but it cuts down the risk that they will be taken advantage of when buying a car, home, or other big ticket item. has a list of questions to ask when interviewing financial planners. The questions fall into three categories 1) costs, 2) products, 3) service. Planners are all over the board when it comes to fees. Trading fees, minimums, and other fees all must be considered. You should take into account the portfolio of services your broker offers, research, and the different ways you can make trades. Finally will the broker give you the time you deserve. Some brokers will not give small investors the attention deserve because the commissions are much smaller. Then again, just because the planner will answer your call on the second ring doesn't mean he is any better at putting your money to work for you. Find someone you are comfortable with and that you are willing and able to move from if your money stops performing as it should.

Full article here