How To Choose The Type Of Brokerage Firm
There are two critical questions you need to ask yourself when you are researching and then selecting a brokerage firm. Based on the answers to these question should determine the type of services you need and which ones you should be willing to pay for.
What type of investor are you? How often do you plan to trade?
What Services do you need?
- Passive Investor(Few Trades): An investor who researches your options, purchases them and then holds them for a long time
- Moderate Investor (Occasionally Trades): An Investor you wants want to check on your portfolio weekly to see if you might want to make an investment or change.
- Active Investor (Frequently Trades): An investor who buys and sells stock on a daily basis.
- Customer Service: An investor who prefers to have an experienced investment advisor to call or visit to discuss their options.
- Do-It Yourself: An independent investor, one who makes their own decisions. Most often uses online investment tools and research for their decisions.