When you are ready to invest your money in the stock market, it’s usually a good idea to get advice from a stock broker. Stock brokers know the business and will help you to make the right decisions when it comes to investments. But sometimes it’s hard to know how to select one. This article will take you through the selection process and help you to make the decisions that are right for you.

1. Determine what you are looking for

Before you choose a stock broker, it’s a good idea to figure out what exactly you will need from them and what your goals will be. Do you want a broker who will focus just on investments, or do you want one that will also educate you and help with financial planning?

2. Compare notes on different services

Depending on what you want, you may decide to go with a full service brokerage firm, or a discount broker might be adequate for your needs. Discount brokers work at a lower commission, but if they offer any advice it’s very limited. You will pay more for a full service brokerage firm, but they also offer a wider range of services.

3. Ask friends and family for referrals

It’s always a good idea to ask people you know and trust for referrals and advice when it comes to choosing a stock broker. Once you have some names, choose at least three to speak to before you make your final decision.

4. Meet with the candidates

Next, you will want to meet with the candidates and get a feel for what they are like. This is a good time to find out about their special designations or training they have, what their philosphy is when it comes to investment, and how long they have been in business. This is also a good time to see how comfortable you feel with them. After all, you are entrusting them with your money so you want to feel as if you can trust them.

5. Find out what how they are compensated

Before choosing a stock broker, find out what the fees will be. This way there aren’t any surprises. It’s important to ask about any requirements in regards to minimum purchases, and what the structures for the fees are. It’s also a good idea to find out if they get more commission on certain types of mutual funds.

6. Find out how often you will hear from them

If you are comfortable with talking to someone once a month, don’t choose someone who is going to call you with every little detail of a change in the stock market. Find out how often the stock broker checks in with clients and take that into consideration when choosing a broker.

7. Ask the broker for referrals

It’s always a good practice to ask for referrals to clients who have similar goals to your own. If the broker is unwilling, then go with someone else.