Expert: Gina Boykin - 12/13/2007

Question
My husband and I have been wanting to invest in stocks (starting small, as you advise) for a while and am on the verge of taking the plunge. We've both read Kiyosaki, and I have been reading up on a few stocks of which I'd like to begin buying shares. My question is how do we get started? Also, what are your opinions of doing this through online brokerages? Or do you suggest that we meet face-to-face with a broker? If we do end up doing that, what kind of information are they going to need from us?

Answer
Discount brokers are best for most people.  If you have questions about anything on the website, it's easy to pick up the phone and ask.  Over the years, this has become a very competitive industry.  Customer service should be pretty good across the board.  Although the person on the other end of the phone cannot necessarily tell you their opinion on the best stocks to invest in (like a full service broker would), they can answer questions about fees, account set-up, how to initiate transactions, margins, account minimums, etc.

However, if you do not feel comfortable investing with just your own knowledge, you want more hand holding, or if you will be investing a large sum of money, you can look at a full service broker.  They provide more financial planning advice, as well as investment advice, at a higher cost.

It's EASY to get started.  Go to the website of a few of the major brokers and see how easy it is to maneuver around on their website.  Take a look at their demos - how to make trades.  Then compare.  Of course, fees are going to be a factor, but they should not be the only factor.    If you want some guidance on the things you should consider in your search (things you may not think of on your own) there are plenty of articles on the web.

Here are a few:
http://www.smartmoney.com/brokers
http://www.fool.com/dbc/tables/compare.htm

After you've made your choice, you may fill out an application online or print it out and mail it in.  You can review an application online to see what will be requested.  You will have to provide initial funds (either through a wire/EFT or check) from your regular bank account.  That's about it!  It will not be much harder than opening a checking account.