Stockbrokers are paid to make stock trades for you, according to OnlineStockTrading.org. Stockbrokers research stocks before buying or selling a stock. Stockbrokers were extremely important two decades ago because getting information about stocks was difficult. In today's Internet world, however, stockbrokers are no longer a must because stock information is readily available online and in papers from resources such as "The Wall Street Journal." If you don't have time to research stocks then you should hire a stockbroker.

Full Service or Discount Stockbroker

The Securities Division of the Maryland Attorney's General Office explains that the first thing that needs to be considered when looking for a stockbroker is whether you want a full service or discount stockbroker. Full-service stockbrokers recommend certain stocks for you to buy, and discount stockbrokers only place the orders you tell them to place. Having a full-service stockbroker is beneficial because you have a professional that can place orders and give you stock advice at the same time. The only disadvantage to having a full-service stockbroker is that they're more expensive. Regardless of what type of stockbroker you work with, make sure they are registered with the Securities Division of your state.

NASD or SIPC

The National Association of Securities Dealers (NASD) is an organization for broker dealers in the United States, according to Robin Carahan. All NASD members must follow a set of guidelines for fair stock practices. The Securities Investors Protection Corporation (SIPC) protects investors who have securities or cash in a brokerage account when brokers go bankrupt. Your cash is only protected when it's in the hands of your broker and your broker goes bankrupt. Otherwise, your investments are not protected by the SIPC.

Stockbroker Character Traits

There are specific character traits that you should look for when trying to find a stockbroker. Stockbrokers need to be easy to understand, and you need to be comfortable around them, according to Robin Carahan. Finding a stockbroker that doesn't pressure you is also important. Top of the line stockbrokers take the time to find investment opportunities that work for you. Finding a stockbroker that pays attention to what you tell them is also important. You should never have to give your stockbroker a set of directions more than once. If you don't understand something, your stockbroker has to be willing to explain it to you until you understand it.

Source:

OnlineStockTrading.org--Do I Need a Stockbroker?

Securities Division of the Maryland Attorney Generals Office

Robin Carahan--How To Find a Stockbroker

More Information:

MSNBC Anwser Desk--How Do I Find a Good Stockbroker?

Mainstreet.com--How To Find a Stockbroker

CNN Money--How To Find a Stockbroker You can Really Trust