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15 Tips for Selecting a
Broker... Page 3
continued
12. Demand
support.
In chat rooms around the Net, the most common complaint about online brokers is their
response to customers' questions. You can nip this problem in the bud by checking out a
broker's attitude about customer service before you need it. Is there a prominently
displayed 800 number that you can call for help? (Be suspicious if it is
buried two or three layers deep.) Can you reach a real, live person (You may have to
listen to a voice menu, but there should be an option for reaching a human being.) How
long did you have to wait on hold? Is the email address prominent or easy to find? How
responsive is the broker to an email? Send them a test email to find out.
13. Perks are good.
Online brokers compete aggressively for new customers by offering such perks frequent
flyer miles, extra real-time quotes, free trades, gold debit or credit cards, even cash in
your account. If everything else is equal, why not go for the freebies?
14. What to do in case of a crash.
Systems do crash. What are your broker's emergency back-up measures when the inevitable
happens? Touch-tone telephone? Personal broker? Local office? Be sure you know the
emergency measures before you need them.
15. Two's comforting, three's a security blanket.
The best possible back-up is open a second or third account at a different broker. But it
can take two to three weeks to open an account, even with an online application (you still
have to sign forms and send in money.) Do it before you need it.
In the end, selecting a broker is a lot like buying a house or choosing a mate. It's a
matter of whether you like Site A better than Site B. So pay attention to your feelings.
Do you like the look and feel of the site? Is it easy to navigate? Is the portfolio
tracker easy to use? Does it have real-time portfolio updates? Do you like the tools it
offers? Would you want to spend some time there? As with any match, comfort
is as important as anything else.
Copyright © 1999
Kassandra Bentley, President, CyberInvest.com.
Stock Calculators:
-------------------
• What is my return if I sell now?
• Should I sell before or
after one year?
• What future return makes selling now
worthwhile?
• What selling price provides my desired
return? |
