Anonymous asked in Business & FinanceInvesting · 1 decade ago

What questions do I ask a stock broker if I am investing for the very FIRST time?

I am about to turn 20 and I would like to invest some saved money in a low-risk stock. I've never done this before, and I'm meeting with a broker soon. What questions should I ask her and what mistakes should I be made fully aware of? Please, mature answers from experienced investors, thank you.


11 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    Different people calls for different needs... So, cheap online broker may not be the best solution to your situation and need. Do not open online brokerage account and trade youself without knowing what you are doing... you will regret it very soon if so. Rather, ask if how the borker can help you. Ask him about:

    1. How he charges fee or comission.

    2. Ask him how he recommend investment ( his practice style)

    3. Is the service a discretionary based or they will call oyou before each transaction is done.

    4. Tell him/her your situation and ask what the stockbroker will recommed you to do.. do not say you need to invest in stock or any particular security type, then wait for his answer.

    A good broker should probe you for your real need and he will dig really deep to understand your real goal. Observe if he or she is trying to push any particular product or certain type of stocks before he really find your financial need or goal. If so, he's more like a transaction based type of stockborker which may not be that helpful to you.

    But the best way to start with investing is to invest in no load mutual funds which are low in cost and carry certain standard and method to control risk.

    Let me know how the broker answers your questions next time.. I may be able to give you more suggestion.

  • 1 decade ago

    What about his fees. Is he pushing mutual funds? Generally he will try to push his company's mutual fund. Some of these funds management fees are quite higher. "Load" is another thing, which is money you pay up front to join the mutual fund. However, 90% of mutual funds underperform the S&P 500, so it is often best to buy an index fund.

    Don't look at the mutual funds performance alone, but performance compared to the S&P 500. The 9% return may look nice, but for no load and little fees, the S&P may have returned 10%.

    You should look for funds that have <1% fees and a 0% load. Try FSMKX, which is the fidelity S&P500 fund.

    If you don't have much money, skip the broker, open an account at or

  • 4 years ago

    The major on line brokers are generally pretty good. The favorites are Fidelity, TD Ameritrade, Scottrade, and Charles Schwab with Scottrade being the most popular among AAII members perhaps because of its slightly lower transaction cost. Personally, I use Fidelity and TD Ameritrade. I like Fidelity's research offerings, but I like TD Ameritrade's interface better. Just my personal opinion. I am not sure there is any stock answer to what makes a successful investor. Different investors have different techniques to accomplishing their goals. You will have to develop your own style. There are countless books that have been written on the subject. They number in the thousands.

  • 1 decade ago

    Remember that a full service broker is very expensive. You can invest online at ameritrade, sharebuilder and a bunch of other places. Do some homework at ,, investopedia and other places. Go for stocks that will give you a great return over time like Apple, Navatel (NVTL) or SYX. The premium site at will show you that some analysts actually put there money where their mouth is!

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  • 1 decade ago

    You will want to only ask questions regarding the actual transaction of the stocks. Things like: what is your commission? What kind of bid-ask spreads might I expect? How do I place a stop loss? You do not want to ask your broker which stocks to buy. Brokers are salespeople and tend to peddle stocks that make them lots of commissions, not necessarily the ones with good fundamentals.

    If you want to learn about picking individual stocks, there is one book that is my personal favorite on fundamental analysis: The Five Rules of Successful Stock Investing, by Pat Dorsey

  • dllou1
    Lv 4
    1 decade ago

    Go online and read all about Markowitz Efficient Frontier and proper diversification as a means of beating the averages.

  • Anonymous
    3 years ago

    Every time I ask a question, even if its the simplest one, they cannot provide me a good informed answer here. what happened to people that actually take the time to answer..

  • Anonymous
    1 decade ago

    Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

    wish it will help you.

  • Anonymous
    1 decade ago

    What are your fees?

    Open a Scottrade account and do it yourself!

  • ?
    Lv 4
    3 years ago

    I don't know what to say

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