Six tips for finding a broker

Finding a broker is a lot like picking a good investment. There are many different variables to consider, and if you make the right choice, you'll likely enjoy some financial rewards.

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In the age of information, shopping for a broker should be a breeze. The market features plenty of brokers, and everything you need to know is either a phone call or a mouse-click away. All the information in the world won't help you, however, unless you know which questions to ask. Consider these items when searching for a broker:

1. Home on the range

When evaluating commission fees, keep in mind that the level of performance won't be significantly different between a broker charging $7 per trade and one charging $20. However, a broker who charges below $7 will probably provide a lower level of customer service.

2. Look into other fees

Commission fees aren't the only costs to consider. Other charges could be levied for closing an account, for wire transfers, annual fees, and on and on. Put them all on a spreadsheet, and compare the contenders.

3. Service that makes you smile

Customer service has many dimensions, not just how pleasant someone is to you on the phone. It includes everything from ease of navigation through a brokerage firm's website to their phone answering system. To sample the broker's approach, click through the website or call their office. Your experience will speak volumes about their overall approach.

4. Other financial services

You may want additional financial services from your broker, including:

Banking services:
Many brokers offer check writing, bill payments, ATM cards, and more.

Other investment products: For the investor who wants to diversify, your broker should have access to products such as government and corporate bonds.

Mutual funds: Generally, you should buy your mutual funds directly from the company. If you want your broker to make the purchase, check first into their fees. Make sure that they also carry the fund family that you want to purchase.

5. Plan B

If your broker allows computer trades, make sure that there's a backup in case you run into a glitch, or if you're traveling and don't have access to a computer. A good broker should have plenty of backups waiting for you, including a method to place orders over the phone.

6. Research

It's not necessary to have a broker who provides research in exchange for higher fees. There's plenty of data available on the web, and much of it doesn't cost a dime. However, many brokers provide outstanding research as part of their services, and that can help if your time is limited.

Brokers offer their own blend of services-you just need to find the one that's right for you. By using the qualifiers listed here, you should find one who covers all the bases. Be choosy, be thorough, and ultimately, you'll be happy with your pick.

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