Tips on Choosing a Brokerage Firm

If you going to invest your money with a stock brokerage firm you should know that all stock brokerage firms are not the same.

Most will be able to sell you stocks, bonds and mutual funds and some will be able to sell insurance, annuities, and a host of other products as well.

The larger, national firms will generally be able to sell you the most products.  They will also generally have a larger support system to provide you with informed advice and good service.

There are also smaller, regional ‘full service’ firms.  Some investors find a smaller firm culture more appealing.

There are also a great number of “independent” brokerage firms.  These firms may offer a smaller array of products and services.  The brokers here may also work out of smaller offices or out of their homes. Brokers at these firms frequently call themselves “financial planners” and may offer other non-brokerage services like tax preparation.

Finally, there are the so-called “discount firms”.   These will always be popular with investors who no what they want and know what they are doing.  These firms charge quite a bit less per trade than the “full service” firms, but don’t offer to advise you what to buy or when.