Finding the right investment firm can be a daunting task in today’s day and age. There are so many different firms of varying size and specialty that it can be hard to focus in on the one that is right for you. You should use this guide as to help navigate through the process of finding an investment firm that’s right for you. There are key factors that you’ll want to consider when making your decision. Overlooking them can be costly, and can greatly effect whether you reach your investment goals or not.
Great Value – No matter what size firm you go with you’ll want to make sure that you get good value for your money. The investment products that you select should be the best the industry has to offer. Value is measured as a combination of cost and performance. If your investments are doing well and don’t cost much for you to access them, then you’ll probably stick with the firm that is offering it. If you have a stock that is doing quite well but costs too much for you to be involved in, then it doesn’t make sense. Likewise if you have fees that don’t cost very much but the stocks don’t do well, it won’t be a good match.
Earnest Employees – Don’t go with a firm whose employees work on commission. This will lead to them steering you into the investment vehicles that net them the greatest amount in income. It only makes sense. No matter how good a person is, and how much they care about their job and want to offer you the best product and see you make money, when they are enticed to sell you certain products to increase their paycheck, you will not come out on top. You won’t get proper investment advice, instead you’ll just get something akin to a sales pitch.
No Load Companies Offering Mutual Funds – These mutual funds don’t charge a commission when you invest in them. This means that everything you contribute to the fund is working on making you more money. In general mutual funds are a great way for the novice investor to get started. Not having to worry about paying commission or fees when starting up with an investment makes them even more attractive.
Discount Brokers – In 1975 the SEC made it so investment firms could charge whatever fees they felt were fair. With this deregulation, competition increased and more options and better service became available to investors. The products that discount brokers offer are not any better or worse than in regular firms, they just will do it for less expense. They will also give you better investment advice because they are not as interested in making a giant profit off of your investments.