Significance

• To buy, sell or trade securities, investors must use the services of a stockbroker. Online trading stockbrokers may do nothing more than take an order, whereas full-service brokers will discuss a trade and more.
  
  

Considerations

• A stockbroker can offer valuable insight. She can provide asset guidance and protection, suggest asset allocation, help you keep a steady flow of income and warn of potential drawbacks or dangers.
  
  

Function

• Registered stockbrokers must adhere to the strict rules and regulation of their firms, as well as those mandated by the Securities Exchange Commission (SEC). Registered stockbrokers are insured by the Securities Investors Protection Corporation (SIPC), which means their clients are also protected. It is their job and in their best interests to wisely and honestly service their customers and protect their investments.
  
  

Characteristics

• A good stockbroker is not pushy, is easy to talk to and listen to, available when needed, offers investment advice that is suitable and maintains up-to-date and adequate records.
  
  

Research

• Stockbrokers can supply investment advice and research materials not always available to nonclients. They can also offer investment opportunities that are not always open to the general public.
  
  

Choose

• Finding a good stockbroker is not always easy. Recommendations, length of service and reputation can help investors choose a good stockbroker.