Do you really need a broker for investing?

Question

Does it just make it easer? Or do you have to? Or is it one of those things where you don't have to in theory, but in actuality the way the system works you have to have one where not having one will make things a lot more difficult. And can you be your own broker?

Thanks for any useful information!

Answer 1

I guess it depends on what you want to do really.  For long term investing inside of an IRA, I recommend studying up on mutual funds (mutual funds for dummies was good for me).  Once you understand the basics of mutual funds, pick a company and buy direct.  The key, like with everything else, is finding a company that doesn't kill you with fees.  Vanguard has been great and Fidelity is pretty good now.

Since you are asking the question, I'm assuming that you are inexperienced with investing.  If this is the case, get the book, and start with putting your IRA in a mutual fund.

Answer 2

The short answer is no, you do not need a broker for investments.  You can go to TD Ameritrade, or any of the online brokerage houses.

Do I Need a Financial Advisor?

Let's start with a more fundamental question: how much can I improve my financial situation? You might be thinking, "I have a good salary, I pay my bills on time, I know how to do my taxes, I have insurance…I'm handling my finances pretty well; spending time and money on financial planning is not worth it for me." Many people think this way, but often it is because of a lack of awareness of financial opportunities and best practices. Indeed, time spent devising and implementing a well-researched and sound financial plan will likely yield:

More money for you and your family

Better preparation and flexibility for life changes

Increased protection against mistakes and unexpected circumstances

An investment in financial management provides peace of mind by ensuring your best odds of permanent wealth and comfort. This planned approach to success is the result of a multi-step process. You must:

Set achievable financial and personal goals

Assess your current financial health by examining your assets, liabilities, income, insurance, taxes, investments and estate plan

Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financial strengths

Put your plan into action and monitor its progress

Revise your plan to accommodate changing goals, changing personal circumstances, changing financial opportunities, and changing market and tax laws

The planning process requires skill, knowledge, diligence, and discipline, but great reward makes it well worth the time and effort.

Answer 3

No, you don't.  But if you want to buy and sell stocks, you will need a brokerage account.  I suggest BuyandHold.com if you plan to invest the same amount each month.  If you are more advanced, you can open an account at E-Trade.

Answer 4

You can do what you want, whenever you want, but if lyour going to buy/sell securities in the United States you will have to go throught a brokerage firm, this dosenot mean you have to use a stock broker, you can invest/trade on-line.

All major brokerage firms provide their clients with on-line services, including trading platforms, latest market & financial news and research.

Answer 5

Like Doc says, NO!

Those financial advisor are like you and I, who has a little bit more experiences in the finance sector then average joe.  But if you start to get into it yourself, and since you have put some away in these "fake" portfolio and haven't lost big time during this "recession" period.

Then do it yourself. You have done pretty well for yourself for practice. Now come play the real time!

Like Doc has say, set up your goals on what you want to do with those investment, and bear this in mind.

You are willing to take risk. If you aren't willing to take risk, then you might take an advice from a financial advisor. But bear this in mind, they can made some foul mistake as well. Often time when pplx leave it to the financial advisor and just see the $$ that it brought in.  The $$ that is brought in are smaller if you take the time and invested yourself and know the market well.

Read up on the financial sector and open yourself to be more receptive to the world news and others. You will do fine!!

New adventures awaits you!

Answer 6

if you ask regarding forex investments the answer is yes. You can find some interesting offers here at www.fx-forex.com