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I’ve always noticed that a stockbroker is never just a stockbroker. They’re “financial advisors,” or “account executives” or “investment consultants,” anything but a measly old broker. Barron’s has a good article by a broker on how to do business with one:

If you do choose to deal with a broker, request a full accounting of how much you are paying in fees -- and try to negotiate them lower. Point out that E*Trade offers to rebate 50% of your mutual funds' 12b-1 fees, which are recurring commissions. If your broker suggests moving you into a fee-based account, ask for a comparison based on past and proposed commission activity to see if it's right for you. Insist that any wrap fee be lowered by at least 15% to 20%. Most brokers can afford that in order to keep a good customer, since the fees are so high to begin with. If your broker suggests mutual funds with loads, ask about lower-cost exchange-traded funds. If he recommends a variable annuity, request a comparison with a no-load fund.

Posted by edelfenbein at August 21, 2005 3:13 PM