Choosing a broker.
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Choosing a broker. Bert recently wrote...
We are at the point now though where we have to choose an online broker. What we're looking for is basically a vehicle for making investments. We have other resources available to us for use in doing research etc. Can you guys shed any light on this? There are so many brokers out there. I wish I could say that there is one broker that is
the best for all investment clubs, however, not all clubs are created
equally. Nor are all brokers. Therefore, I can't
give you a specific recommendation. However, I can recommend
that you and your club carefully consider what it is that you are looking for in
a broker and then choose your broker based upon that criteria.
For example, does your club place market or limit
orders? Does your club hold stock in street name at your
broker or does your club wish to hold the stock in certificate
form? Maybe you need certificates in order to enroll in company
sponsored DRIP plans. Do you want monthly statements mailed to more
than one club officer? Do you trade online, via phone, or in
person? Do you need the availably of 24 hour support and
customer service? Might you transfer stock to withdrawing
members? What extra brokerage fees and charges is your club
willing to pay? etc., etc......
Having considered these criteria, I would suggest
that you review the top brokers as listed at http://www.gomezadvisors.com/ and
http://www.fool.com/dbc/dbc2.htm
Once you've reduced the list to a few brokers, send
your remaining questions to each of those brokers to get a feel for their
support and responsiveness. It is likely that one or two will shine out
above the rest.
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