Find A Stock Broker - Questions You Can Ask To Make Educated Decisions

There are several reasons you may want to find aresearch reports, etc.
stock broker. You could be looking for a job, wanting4) What is your risk tolerance? Your broker needs to
to invest internationally, or simply switching stockknow this for the "Know Your Customer" rule.
brokers because you don't like how you were5) Does your broker need to be local so you can
serviced by your previous broker. To be bettermeet face-to-face?
prepared, here are a few things you should know6) What is your experience in the markets, especially
(and have available) before making that call:the assets/derivatives in which your broker
Looking For A Stock Broker Job:specializes? Your broker needs to know this for the
1) Have you pursued many of the online forums and"Know Your Customer" rule.
brokerage firm recruitment services?7) Are you familiar with the choices for order routing
2) Which NASD licenses do you currently have? Andand extra transaction costs (e.g. ECN fees)?
are they registered properly?Finding An International Broker (in addition to the
3) Do you have any compliance concerns which showitems listed above):
on the NASD (now FINRA) Broker Check website?1) Know the specific reasons why you need to
4) Are you up-to-date with your continuingcontact an international broker.
education?2) Are you aware of any legal constraints about your
5) The facts and figures about your current book ofinvesting internationally?
business, how many customer leads you have (which3) Are you aware of the risks due to currency
you are allowed to bring with you after clearancefluctuations?
from your compliance department), and other4) Are you aware of any additional taxes you may
industry benchmarks.pay after liquidating positions internationally?
Finding A Domestic Stock Broker:5) Are you aware of all transaction costs?
1) What is your available capital currently?6) Do you know how to instruct your broker on how
2) Your net worth, liquid net worth, and any incometo "mark" your order, such as with a CFD designation
you stand to gain - such as a bonus. You do notor execute the order only during the "auction
have to disclose all of these, but it helps for YOU tomarket" session?
know them about YOURSELF!While these questions are rather basic, and there are
3) What you want the broker to do for you: makemany more basic questions, they hopefully will serve
stock picks, give you overall financial plan, help youas a reminder of what you need to determine
with a certain asset class, be available to talk to youBEFORE calling a brokerage firm. Answering these
by phone whenever you call (or will e-mail suffice), ifquestions will go a long way toward making you
you need "hand-holding", offer your direct access toeducated so that you find a stock broker right for
the markets (like daytrading software), give youyou.