If you plan on hiring a brokerage to help you with your savings and stocks, then you need to make sure you’re working with the right one. A great relationship is the key to making the most of your money, so I suggest you know the answer to the following 6 things before you decide who you will work with:
What Incentives Do they Have?
If you didn’t already know, this industry is very competitive. As many don’t cost a lot, they also have incentives to try to lure customers into working with them. If you’re torn between two brokerages, you’ll need to know what incentives they offer to their customers. One incentive, for example, may be getting free trades.
Is This a Risky Brokerage?
Not all brokerage firms are created equal, which means some of them can be risky to work with. Working with a small firm vs. a large, established firm will mean different levels of risk for you. You can read more on this at The Brokerage Review. You’ll need to know how you feel about taking risks before making a decision.
Will I Be Able to Access International Markets?
You could come into potential investment opportunities all over the world. International investors need global markets to thrive. If you have a global view of your investment portfolio, you need to know if you’ll be able to access international markets with your brokerage firm.
What Tools Will Be Offered Online?
You can use many online tools to monitor your portfolio. Assess which brokerages offer what and go from there. If you would like to have real time access to your accounts, then the tools you’re offered will be important to you. However, if you’re simply doing a long term buy and hold, you won’t need to worry about this too much.
Will I Get a Good Level of Service and Support?
When it comes to online brokerage’s, you get what you pay for. If you aren’t paying much at all, then it’s highly unlikely you’ll get a good level of service or support. If you pay a premium price, then you will. It can be worth paying the premium price to get the right level of support you need. This is a valuable asset for investors. You could even call up the customer service line of a brokerage before making your final decision to ensure you’ll get the level you expect.
What Will I Pay?
When you open up a brokerage account, it should be free. You shouldn’t expect to see startup costs or have expenses spring on you at the last minute. However, they will charge a commission in order to process your trades. This will be your biggest expense, so make sure you choose wisely. You should always be able to find a firm whose costs are in keeping with your budget.
You can read plenty more interesting information about finance here. I hope you have lots of luck with the stock market and the right brokerage!