| When it comes to choosing a brokerage, you will | | | | If you are already a good customer with a |
| have to decide between full service or discount. | | | | full-service broker, you can always ask for a discount |
| The difference is basically in the amount of money | | | | on your fees. The worst the broker can say is no. If |
| you pay and the amount of help you receive in | | | | your account is a good one, many brokers are more |
| making decisions. A full-service brokerage firm will | | | | than happy to adjust their commissions for you. Most |
| offer you every imaginable financial service. You will | | | | full-service brokers feel the competition from |
| find everything from professional advice to even tax | | | | discount brokers and are willing to compete. |
| preparation. But you will pay for it. All of these | | | | You have to look at what you need out of a |
| services cost money, which you pay in high | | | | brokerage. If your financial situation is one in which |
| commissions. | | | | you would really utilize a full-service brokerage, then |
| A discount broker does not offer you all of the | | | | that might be the right decision for you. But the key |
| extras. Therefore, you pay significantly less in fees. | | | | is making sure that all your needs will be met by the |
| Many people do quite well with discount brokers, and | | | | brokerage. You want to get your money's worth. |
| manage to save money as well. | | | | When you first meet with a full-service broker, you |
| Many people out there are cautious when dealing | | | | should ask a few questions: |
| with a broker. I think that this is good. You should | | | | - How much do you charge to invest my money? |
| always be careful when handing your finances over | | | | Ask about wrap accounts, commissions and |
| to anyone. Make sure that you choose the right | | | | fee-based accounts attached to asset size. |
| broker for you. You should feel as if the broker is | | | | - Do you have a good research department with a |
| acting in your best interests. That means that you | | | | good track record? |
| don't feel pressured to make trades that you don't | | | | - Do you monitor your brokers? You can always ask |
| want to. | | | | ot see the conduct record of the brokers to see if |
| One of the best ways to start a relationship with a | | | | they are disciplined. |
| broker is to be upfront from the start. Remember, | | | | - Do they provide on-line services? |
| you are the boss here. Tell the broker your financial | | | | - Can I see a sample statement? You want to make |
| goals and make sure that your instructions are | | | | sure that the statement is easy to understand. |
| followed. Watch your account for excessive trading, | | | | Keep in mind that discount brokerages don't mean |
| which can cost you. Watch to make sure that you | | | | that you will make less on your investments. You |
| are making money. That is the number one sign of a | | | | simply pay less because there are fewer services. In |
| good broker. | | | | some cases, you will pay 90% less. Discount brokers |
| When you use a broker, you should see a return | | | | do not give investment advice, though many do |
| equal or better than the return on the S&P 500 | | | | provide research reports from experienced analysts. |
| Index. If you aren't, you would be better off cutting | | | | They are available to contact 24 hours a day and |
| out the commissions and investing directly into a | | | | many have a strong Internet presence. |
| S&P index fund. | | | | |