The simplest way to start your search for a broker is by asking people you know if they’re working with someone whose services they’d recommend. You can ask friends, family, colleagues, or perhaps your employer for recommendations. If you’re working with other professionals, such as an attorney or an accountant, they’re also good potential sources for referrals.
Alternately, you could check whether brokerage firms in your community are offering seminars, classes, professional meetings, or community events on personal finance or investing. If you attend, and especially if you schedule a follow-up meeting, you’ll be able to form an impression of what it would be like to be a client of the firm.
You’re likely to discover that your final choice will be based on a combination of substance — with regard to credentials — and a personal style with which you’re comfortable.
Questions to ask
Here are some questions you can ask yourself as you narrow your search:
Do you want to select investments collaboratively or do you expect your broker to take responsibility for making recommendations?
Are you
investing to meet specific financial goals or are
you interested in building a broad-based portfolio?
Do you want to invest with a firm that will also provide banking, investment planning, wealth management, and other services, or do you prefer to keep various parts of your financial life separate?
Do you want access to online research and tools provided by the firm you work with?
Do you want to be able to meet with your broker on a regular basis?
Do you have enough?
Some firms require minimum opening balances for brokerage accounts, and others link the services available to you to the size of your investable assets.
That’s something you may have to take into consideration in making your choice.
