How to choose a broker or broker

That you are interested in investing in the stock market. Very well, then it is more likely that you will need the services of a broker or stockbroker.

There are a number of brokers in the market, so it is important to municioso examination of the various services offered and so choose the one that suits you according to your investment patterns.

Basically, the broker is who will take your orders and execute purchase and sale of equity securities, and at the same time act as an intermediary between buyer and seller.

The remuneration of the broker depend largely on commissions for executing orders. This means that the larger the volume of trasacciones executed by him, the greater their remuneration, and therefore there will always be runners that will induce you to buy stocks that are not in your best interest. Are these corridors must identify and avoid.

A brokers are also known as financial advisers, investment consultants, financial consultants and often work for a brokerage firm.

In the United States, to exercise that function brokers must be duly authorized to obtaining licenses known as Series 7 and Series 63.

Depending on your needs as an investor you can choose between two types of brokerages

• Traditional Brokers: They are characterized by providing a full service as they offer a wide range of financial products as well as research and advisory services. Among the products offered are stocks, bonds, insurance, derivatives, and annuities.

These brokers will give personalized attention and help you select investments that will add to your account. They will also give access to reports and research produced by its analysts in making investment recommendations.

If you choose this option your broker will call you frequently to try to sell the latest investment opportunity, whether in stocks, bonds, etc.

Because of the extensive services they provide, their fees and commissions tend to be high.

• Discount brokers: Unlike traditional brokers do not offer the same range of products and services, as only engaged in taking orders for buying and selling, and they charge a lower commission.

However, there are some discount brokers that provide access to research reports and tools to help investors select their investments.

Generally orders are made online or by phone, with those made online the lowest cost.

• Offer Product: While it is true that all brokers allow you to buy and sell corporate stock, not all offer alternative products such as options, futures, forex, etc. So if you are interested in investing in these instruments you must choose a broker that allows you to do so.

• Frequency: Note that brokers earn commissions according to the volume of orders executed, the same that will be paid by you. Therefore, if you plan to do a high volume of buying and selling, you should consider the associated costs as there are runners who have different levels of fees according to the volume of transactions.

• Advice: If you feel you do not need advice on your investments then you better use the services of discount brokers, otherwise you should seek the services of a traditional broker.

• Contact forms: There are three ways you can make your investments. You can go to the office corridor, telephoning, or make orders online. You should determine your choice and consider this factor when choosing your broker.

• Reputation: You must ensure that the broker is properly certified. In the United States, it must be a member of the Securities Investor Protection Corporation (SIPC) protects the investor if the firm becomes insolvent.