Q:

How do I find a stock broker?

A:

Quick Answer

To find a stock broker, first decide whether you require a full-service broker, discount broker or online broker, according to CNN Money. Investigate each potential stock broker's registration, licensing and background, warns the U.S. Securities and Exchange Commission.

Continue Reading
How do I find a stock broker?
Credit: Andreas Poike CC-BY-2.0

Full Answer

Stock brokers differ in the services they provide and how much they cost, reports CNN Money. Full-service brokers share their expertise by offering ideas, providing research, tracking investments and suggesting changes. They typically work for a commission based on the price of the stock handled. Discount brokers handle orders but leave much of the research up to the investors. Their overall cost is significantly less and depends on the amount of trading they do. Online brokers are the cheapest option and offer no amenities.

Be sure that the stock broker you choose meets your individual financial needs, advises Forbes. The best referrals of stock brokers are from those with similar financial goals. Only choose brokers who are accessible when necessary and regularly communicate with clients. Before choosing stock brokers to work with, investigate them through the BrokerCheck website of the Financial Industry Regulatory Authority, reports the U.S. Securities and Exchange Commission. BrokerCheck is a database with information about stock brokers and brokerage firms, including accreditations, educational and professional details, past disciplinary problems, complaints and criminal activity.

Learn more about Financial Planning

Related Questions

Explore