How do I choose a broker?

How do I choose a broker?

Brokers handle the mechanics of buying and selling. An account with a broker is the most convenient way to invest.
Opening an account is simple - fill out a form and send a check for the amount that you wish to have available for investment. You can add or withdraw money at any time. The broker will provide you with a toll free telephone number and an Internet site to use for placing orders and following your account. You will receive a monthly statement and, usually, a mailed confirmation of each trade.
The financial newspapers and magazines are filled with ads placed by brokers who want your account. You can write to them for information and/or visit their web sites. Costs and extra services vary widely. Brokers tailor their operations to fit different types of investors. An options trader will choose one broker; an investor who trades very low priced shares will choose another (whose commission is per trade rather than per number of shares traded).
It is quick and easy to change brokers. You do not have to sell your holdings, transfer cash to the new broker, and then re-buy everything. Your holdings are transferred directly to the new account. If you don't like the broker you have chosen, or if your investment style develops in a direction catered to by a different broker, switching will cost you only a minor fee and loss of trading access for a week or two.
Given the ease of switching, it is best to begin with less expensive brokers. You will not get a plush branch office where you can relax and be persuaded to buy more stock by well mannered arm twisters - I mean, customer representatives. You probably will not get an international debit card. But, you will be able to buy and sell independently, at the lowest cost, at any hour, using your own judgment. The money you save can be invested and work for you, not someone else.
When you choose a broker, unless you have a good reason to do otherwise, cheap is the way to go.