Step 1
Identify your requirements. Here are some key points that you could consider:
- How often will you purchase financial securities through the brokerage?
- Do you plan to invest in stocks, bonds, mutual funds, ETFs, or a combination of these?
- Do you plan to trade on a regular basis?
Step 2
Based on the details above, you can draw up an investment plan. At this stage, it would be useful to list down any additional services that you would look for in a securities brokerage. For example:
- Would you transact online or would you prefer to place your orders on the phone?
- Do you need the brokerage firm to provide you with research reports and recommendations?
Step 3
With this information in hand, you can now identify several brokerages that meet your needs. For starters, our SmartSearch tool allows you to be connected to the right securities brokerages that you may need. Meanwhile, write down any questions that you may have.
Step 4
Contact two or three securities brokerages that seem to be a good match. Set up a personal meeting or, if that is not possible, speak with them over the phone to ask any questions that you may have.
This step is very important. Your personal interaction with the firm will give you an idea of what you can expect if you decide to become their client. Keep in mind:
- Are the brokerage’s employees courteous?
- Do they have the knowledge to answer your queries?
Step 5
It is advisable to seek clarifications before you register with a brokerage. You don’t want any unpleasant surprises later, so choose the securities brokerage that you think is right for you.