FINDING A FULL SERVICE STOCKBROKER Takes Patience
Finding a full service stockbroker not an easy decision, especially in this day and age of “at your fingertips” information. Don’t get me wrong, Finding a full service stockbroker is still useful to some, but there are many factors to consider.
CAN YOU MAKE YOUR OWN DECISIONS ? I think this is the most important aspect of weighing full service versus discount. Ask yourself this question. Do you have the time and knowledge to read research, articles and charts ? If the answer is yes, then you should seriously consider working with a discount broker with at least your non-essential funds. If you are fairly astute there is no reason to pay the increased rate of commission.
DO YOU MATCH WITH YOUR BROKER ? Some stockbrokers specialize in equities and others focus on bonds or mutual funds. Their is also a completely different breed of financial advisor who steers his clients towards managed money in exchange for a fee. The key for the client is to not try to ask for stock advice from a broker who buys mainly mutual funds or vice versa. Finding a full service stockbroker is more than the firm the he or she represents or the sales presentation that is given. Both the broker and client need to be on common ground.
FINDING A FULL SERVICE STOCKBROKER Involves Research
ASK FOR REFERENCES ? For some reason clients rarely do this. Think about it this way, you are finding a full service stockbroker, he isn’t picking you. Ask for a few different clients to call, and if the broker is worth their salt, the names will be provided. While references shouldn’t be the sole factor in your decision making process, at least this way, you will have a feel for how the broker operates.
HOW MUCH MONEY DOES HE MANAGE ? This is another question that slips through the cracks when finding a full service stockbroker. There are two ways to look at this. It is not neccessarily good to work with a broker who has $500 million under management, but it’s also not wise to give your life savings to someone who is inexperienced and freshly out of a training program. You may get limited attention from the more established super broker and literally too much from the one with only a few clients and limited assets in his book of business.
Check back for additional tips on finding a full service stockbroker next week.
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