Using US Brokerage Firms

Make wise investments with US brokerage firms

If your company has the ability and desire to research investment options, consider using US brokerage firms to complete the deal. A brokerage firm employs brokers whose primary function is to make trades of various types of investments. Unlike investment advisers, which do the research and make recommendations for investment, brokers assess your firm's investment goals and handle the trade. Your business will find that using US brokerage firms is the most expeditious way to invest.

So it's easy to understand that using US brokerage firms can be as complex or simple as your team wants it to be. Depending on the level of involvement of your financial department in investment planning, you can use full-service, discount or even online brokerage firms. As you decide how you want to use stock broker firms, keep the following points in mind:

1. Stock brokerage firms sell an array of investment products.

2. Many full-service US stock brokerage houses are well established.

3. Online and discount US brokerage firms can make investing easy and inexpensive.

 

Consult with a US stock broker to learn your investment options

One basic reason for using a US stock brokerage house is to understand different investment options. That discussion will help your company decide whether to invest in stocks, bonds, mutual funds or other investment choices. Your broker will profile your company and clarify the pros and cons of different investments.
Try: Use the archives at Kiplinger.com to learn about US brokerage companies. Many articles include advice and recommendations on which stock brokerage firms to use for specific investments. Combine your findings with the information at the Financial Investment Regulatory Authority website. There you can check the backgrounds of US brokerage firms.

Make wise choices with the help of a big name brokerage firm

Many brokerage firms in the US have been in business for a long time and have had amazing success. For initial or large investments, it's a smart move to use one of these US brokerage houses. Many will provide a prospectus and other documentation to help your firm's decision making.
Try: One of the best-known US brokerages is Merrill Lynch. Their full-service offerings include thought-provoking insights on investing company money. For mutual fund information, use Morningstar. The service provides updated data on key funds and brokerage houses. Consider having your firm join Morningstar.com for daily updates.

Use online brokerage firms for convenient trading

Comfortable with choosing the right investment? Plan to make frequent trades? If so, use a discount or online brokerage firm. Using either will save your business money and time. Because there is a huge cadre of both, the market is competitive and the fees are low. Many even offer initial free trades to get your investing started.
Try: Although it's not on the tip of everyone's tongue like the more-advertised brokerage houses, OptionsXpress is the top-rated online US brokerage by Barrons. Check out their free and low-cost investment services. E*Trade Financial, one of the best-known online brokers, has an introductory offer of 100 free trades when your company opens an account.

 

• Most major brokerage firms are both stock brokers and investment advisers. If your business's investment strategy changes, they can move your account from the brokerage to investment departments.
• US brokerage firms are regulated by federal and state laws. Before making a major investment, check references at the Financial Investment Regulatory Authority and North American Securities Administration websites.

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