what should i look for when Choosing a broker.?

Question

-sorry if it's a stupid question, but i'm new to stocks.

Answer 1

expenses, fees, relaibility, how long they have been a broker (especially online)

If you pick the RIGHT mutual fund, your fees will not be that bad.

Answer 2

For starters , let me say I'm an experienced investor and I could simply give you the name of my broker. But I'm not going to do that.
In general I'd say that when it comes to stock brokers, most people are probably fairly happy. Odds are you won't get taken if you stick with a national name and not some local shop. And once you learn the ropes, you can keep your eyes open when it comes to finding another broker. It's easy to transfer accounts.
Since you're a beginner you might want the hand-holding you'll get at the old-line full service firms like Merrill Lynch. Problem is, their commissions will be high, and I don't even know if they have online trading. If they do, they were late to the game.
If you're a self-learner and self-doer and you're planning on picking your own stocks, I'd go with the online firms. The commissions can be peanuts and the amenities can be bountiful, such as free charting. And the execution of trades can be virtually instantaneous--sorry about the pun.
Every year Barron's magazine does a summary of various brokers. Their treatment is terrific, but I can't tell you the issue of the last article on this subject. The ref desk at your local library might help you. At any rate, Barron's is a great magazine to read. Investors Business Daily is another publication you'll want to become familiar with, and they offer a ten day free trial.
Every hear the expression, "Measure twice, cut once"? It will pay you to learn as much as possible, through reading and learning in all sorts of ways, before you put money down on the next Google. My dental hygenist was just about to retire on her stock market humungous gains before Nasdaq took a dive back in 2000. In September she'll be cleaning my teeth like she has been for some time.

Answer 3

First of all, I think you are wise to invest in stocks rather than mutual funds. Mutual funds charge horrendous fees, which eat heavily into your profits. Read some books on various strategies for picking stocks. As far as choosing a broker goes, it's important to have a broker that is responsive. I have dealt with some online brokers who you can't reach on the phone -- or can only talk to after a long wait. But I currently deal with two brokers that both offer low commissions and are responsive: Charles Schwab and OptionsXpress. One advantage of OptionsXpress is that they have no minimum account size. If all you've got is $100, you can open an account there. I think Charles Schwab wants at least $5,000.

Answer 4

You should look for a person that shares your investment philosophy. If you are a Conservative or liberal investor then that is the person you most likely should chose, unless you think that you should select someone that is just the opposite of you.

You should interview at least three potential brokers to learn of their experience, knowledge of the stocks they sell. If they are allowed only sell company offered stock or are they allowed to sell other stock.

There are other things to consider, but you will be able to detect a few things as you interview the various brokers.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 5

If I were you, unless you have had investing experience, you should stay away from stocks. Instead, put your money in mutual funds. The advantages being diversification and professional management. A mutual fund also has the ability to invest in opportunities that would not be available to you. Low load mutual funds are ideal.

Answer 6

1) A robust trading platform - so you don't get cut off when the volume surges.

2) How accessible they are by phone when you need them.

Everything else you can basically get for free elsewhere.