24 Hour Profits By Picking the Perfect Investment Club Broker -
Hidden Tricks Only The Experts Know
Every investment club needs to work with a broker. No one member
of the club is going to be able to provide the constant watch on
the markets that is necessary to provide up-to-date information
on the stocks that your club may be considering. However, it's a
good idea to investigate several brokers, of different types and
have the investment club meet to discuss the various options
before making any decisions. While many investment clubs will
use a full-time broker who guides them and offers advice at the
occasional meeting, others prefer to use a discount broker.
A discount broker will give the investment club some detailed
information about stocks but won't give any advice about what to
sell or buy. Using a discount broker is generally a more popular
choice since the purpose of most investment club is to make
their own decisions about what stocks they want to be dealing
with. In addition, a discount broker does not charge the same
commission as a full time broker.
The investment club may also want to consider using the services
of an online broker. Online discount brokers will have low
commissions that can be a financial benefit to your investment
club. On average, an online broker will charge $8 or less per
transaction. If your investment club decides to use a discount
broker, you'll need to know how to find one. However, it won't
matter too much what discount broker you decide to use so long
as your investment club is allowed to pick your own stocks.
The investment club should delegate one or two members to find
the best discount brokers that they can find, both on the
Internet and locally. Since there is a great deal of competition
when it comes to discount brokers, the investment club will be
able to get some great deals in broker fees if you take the time
to look for them. There are a few things that you should keep
in mind when you're looking for a discount broker, such as what
sort of customer service the broker offers, what fees they
charge, and whether they offer any other incentives to hire
them. You'll be able to see many discount brokers offering you
their services both locally and on the Internet.
In general, the fees charged by the broker should be quite low.
However, keep in mind that choosing the broker with the lowest
fee can mean you will end up receiving a fairly low level of
customer service. The investment club will need to decide what
aspect of the brokerage is more important to it. If you're
thinking about hiring your discount broker from the Internet
there are some things that you should keep in mind. Online
brokers generally fall into one of three groups:
+ Very inexpensive. If your investment group is planning on
doing a lot of buying and selling in the stock market you'll
want to think about using a very inexpensive broker for your
transactions. Most of these inexpensive brokers charge anywhere
from $4 to $12 per trade. + Moderately priced. The mid range
price that these brokers charge is anywhere from $12 to $20 per
trade. + Expensive. Brokers that charge a high fee per trade
often offer you the best customer service so the price might be
worth it to your investment club. You'll have the opportunity to
work with a broker that gives you great service. These brokers
generally charge anywhere from $20 to $30 per trade. When
you're looking for an online broker you will be basing your
decision on customer service and the way the website operates.
Take some time to look carefully at the website. You'll want to
make sure that the website easy to navigate and the information
is clearly presented.
You'll also want to know what type of customer service the
broker offers. You'll be able to make your decision about
customer service after you conduct your first trade with the
broker. Consider whether there are any other incentives offered
that might make you want to hire the broker.
These can include:
+ educational books and materials to buy at a discounted price
or to read online. + air miles for your air mile program + free
Internet access + a discount on your first trade
But the investment club shouldn't make its decision about what
broker to use based solely on what extra incentives that are
offered. It should take consider all the different aspects of
the brokers carefully. But if it comes down to two or three
brokers that have caught the attention of members of your
investment group, the incentives might be enough to tip people
towards one or the other. Always keep in mind that the
investment club can switch brokers at any time if the members
not happy with the broker they've been working with.