is it better to enter your money into a brokeage firm than a regular bank?

Answer 1

Like so many questions in this forum, this one is answered with the typical, "it depends." Brokerage firms and banks are completely different animals. Handling money is about the only thing they have in common.

A bank is a place to hold your money. It is a mayonnaise jar with a little added security and some interest. If you are saving for the long term and trying to grow your money, the bank is not where you want it. Granted, some if not most brag about their full service, offering brokerage services, insurance, and financial planning; but the truth is that bankers are not financial people. They don't grasp the concepts of optimizing money. I've been on both sides of the fence and can speak from experience.

See a financial advisor to decide how best to handle your money. Your best option is to ask relatives or friends whose opinion you respect who they use. Many do financial planning at no cost to you.

Answer 2

The important thing is to have your money allocated properly between stocks, bonds, and cash. You can do this through almost any bank or investment firm or brokerage.

If you need cash (and everyone needs at least some cash for emergencies) then that money needs to be somewhere earning at least 4-5% interest. You can do that with a bank savings account at a bank like ING Direct or EmigrantDirect, or you can do it through a money market account at an investment firm like Vanguard or Fidelity.

If you want to invest in stocks, you can do it through a brokerage firm like Scottrade where you can buy and sell ETFs and stocks for $7 a trade--or you can do it through Vanguard or Fidelity by purchasing low cost index funds and mutual funds.

Just make sure you're paying the lowest fees/commissions and making the highest interest, no matter where you go for your banking/investment needs.