There are certain characteristics that you should look for in a broker. Clearly, none of us would visit a broker that worked out of a cluttered old garage, or in a seedy location downtown.  However, how do you know if a broker associated with a national firm, or one that works in a beautiful downtown location, is the right broker for you?

First of all, your broker should be dedicated 110% to turning your investment and financial goals into a reality. Forbes magazine conducted a study of brokers and analyzed the characteristics you should seek in a reputable broker.  By following these suggestions, you will be able to find the perfect broker for you and your investments.

The broker should stay in frequent contact

A reputable broker always stays in regular contact with his or her clientele. This means that the broker should not only contact you in good times, but also in bad times. A good broker will inform their clients when they think that there needs to be a change made in the portfolio strategy, and if a new report has come out in which the client would be interested.

A reputable broker will have in-depth meetings at least two times a year to go over a client’s overall financial situation and future financial goals. The broker should discuss with the client any recommended changes in their strategy to make you money and meet your long term financial goals.

Many financial experts agree that if you are not hearing from your broker at least once a month, then it may be time to find a different broker. Also, if you contact your broker and do not receive a response within a day, then it may be time to make a switch. Most brokers at large houses have access to the same information, so going with a younger, hungrier broker may yield bugger rewards. The only way that you and your broker can be on the same page is constant communication.

Avoid excessive trades or unusual trading practices

A broker should establish and maintain a portfolio that corresponds with your unique investment style. Each of us has a different investment style, from high-risk, low-risk, to no-risk at all. A broker should only trade and purchase investments that fit within your desired portfolio and work towards your financial goals. If your main goal is to gain capital appreciation, then your broker should only invest in funds or stocks. If your broker is doing otherwise, then it is time to cut them loose. A huge concern with investors is a practice that is known as churning. A reputable broker will be able to actively manage your account, without trading out of securities too frequently.  This is known as excessive or overtrading. The only time a broker should do this is at the request of the client. Some less-reputable brokers are involved with excessive trading because it generates larger commissions, at the same time reducing your principal.

These are the two main things that you will want to look into before you choose a broker. Remember that if you do not feel comfortable with your broker, make a switch. A broker and client relationship is most often long-term and one in which you should feel comfortable.