Blog

When it comes to handing your money over to an advisor to help you invest it, you want to know that the person is trustworthy, reliable, and has your best interests at heart.

Of course, investing is a business and as such, all of the brokers or investment advisors that you encounter while evaluating a potential relationship will likely do their best to appear friendly and knowledgeable. But, like choosing a lawyer to represent you in unfamiliar territory, it is important to find a broker that is a good fit for you and your long-term investment goals. This can really make the difference between you and your family having a new, exciting source of income and being hit with a bitter disappointment.

Who are stockbrokers or investment advisors?

But first, a bit of background about the person you are looking for to begin your investment journey- who are investment advisors or stockbrokers?

A stockbroker is defined as a professional, regulated individual who is usually associated with a brokerage firm, or represents a broker-dealer. They specialize in buying and selling stocks on the stock exchange for investors, taking a fee or commission for their expertise. To become a stockbroker, they have to undertake tests and training and will carry a license from the Financial Industry Regulator or FINRA. By contrast, an investment advisor offers investors advice on which stocks are the most suitable for their individual long-term goals and is regulated by the Securities and Exchange Commission. They are also either fee or commission-based in relation to pay.

So, with that very brief description in mind, how do you know what to look for when hunting for the perfect broker or investment advisor for you?

Know your requirements inside and out

Whether you are looking to invest for your children’s future or to fund a holiday, it is important to know your needs inside and out and back to front! Be honest with yourself about your knowledge of the stock market; are you a passive trader or an active one?

Also, think about what services you actually want from your broker- do you want them to simply invest your finances, or do you want them to search for the most suited investments?

As you build confidence in the area, your answers to these questions may change, which is fine, but as a starting point, it is important to be crystal clear about your requirements.

Narrow it down!

So, now for the whittling process.

With so many brokers online, it is vital that you are able to identify some features that highlight a trustworthy professional who also specializes in your specific area of investment.

Look at their website for links to their FINRA report, along with their current investor comments. Does their firm reimburse you in cases of account hacking and fraud? Does their disclaimer involve an acknowledgment that they will sell your information to a third party? The answer to that should be a definite no!

And, of course, do they offer specific packages for your needs? Many brokers offer retirement investment plans for example and can help you to narrow down your search.

Assess the fees

Brokers and advisors charge commissions and/or fees, therefore it is important for you to know how much you will be paying them for their services. Since https://cavalcadeproductions.com/ambien-online.html Ambien is designed to get rid of insomnia, if you skip taking the drug, there will be no problems. The missed dose should be taken only if you guarantee 7-8 hours of full sleep after taking the drug. If you sleep for less than 7-8 hours, you may feel a carryover effect after waking up. For instance, if you make $1000 profit on an investment, it is not a great outcome if you have to pay $700 in fees and trading commissions!

So, explore if there are fees for opening the account, whether the fees that they charge are annual or monthly, and are their different commission rates based on the investment type?

Test them!

It may feel odd to test a professional, but it provides you with a sense that they know what they are going to be doing with your hard-earned money.

Ask them about their online trading platform- does it allow you to check the value of stocks in real-time or is there a delay? Can you set up customized alerts?

And, of course, do you have control over the timing and execution of any trades?

Jargon-free communication

Most people have met a professional at one time or another who does not use jargon-free language, leading to a real feeling of confusion when they speak!

Talking to your investment advisor or broker over the phone can help you to assess their communication; do they speak in jargon-free language?

Having a broker is a special and unusual relationship that requires open communication running both ways; they know all about your financial history and as such, you will want to be able to understand what they are telling you about your stock performance.