Top 5 Broker Interview Questions

Conducting a broker interview is essential when you are trying to determine which stock broker to work with. When you are conducting your broker interview, you will want to make sure to ask the right questions. Here are some of the best broker interview questions to ask.

1. How Do Your Commissions Work?

You need to find out how the commission structure for your broker works. You do not want to sign up with a broker until you understand exactly how he or she charges for commissions. Some brokers have fixed commission fees, while others charge a percentage of the size of the trade. You will most likely be shopping around among multiple brokers, and you want to make sure that you understand how each one of them is going to charge you if you choose to work with him or her.

2. Do You Have Any Account Minimums?

Another question that you might want to ask is if the broker has any type of account minimums. Many brokers have a minimum amount of money that you are going to have to deposit with them when you open an account. On top of that, they may have a minimum account balance that you have to maintain. You need to know exactly how much you are going to have to invest in order to do business with a particular broker.

3. Do You Offer Breakpoints?

When you are thinking about working with a particular broker, you are going to want to ask if he or she offers any type of breakpoints. A breakpoint is a discount that you are going to be able to get if you invest a certain amount of money with certain brokers. This will provide you with some savings when you are going to be investing a large amount of money in one place. Some brokers will also allow you to get a breakpoint discount if you agree to purchase a certain number of securities over a specific period. Therefore, you will want to make sure that you understand if a given broker offer breakpoints and how the breakpoint system works before signing up with him or her.

4. Are You Licensed?

When you are about to work with a broker, you want to make sure that he or she is licensed to do business in your state. Every broker has to have the appropriate licensing in order to sell stocks and securities to individuals. This means that you are going to want to see the certification and licensing before getting involved with the broker.

5. What Is Your Experience?

Another issue that you want to know about is the experience level of the broker. In most cases, it will be to your advantage to work with someone that has been in the industry for many years. These brokers have seen everything, and they are willing to provide valuable advice to you because of it. If you are talking with an inexperienced broker, you may want to look for someone else to work with.

blog comments powered by Disqus