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Harm to minors, violence or threats, harassment or privacy invasion, impersonation or misrepresentation, fraud or phishing, show more. What are the pros and cons of hiring a stock broker to make your investments?

Pros and cons of mutual funds? I don't have a lot of understanding of how it all works out, but I've heard since I was in middle school that I should invest.

There's mutual funds and there's buying stocks from companies. I know what the difference between stock and bonds are, I just want to know what is the best way to invest? It would seem that mutual funds are the way to go, since they're investments in different companies, but there have to be some cons. Are you sure you want to delete this answer? Trending Now Karen Carpenter Bee Gees Amy Poehler Corey Seager Life Insurance Truck Tires Sale Phil Mickelson Ford Fusion Cost Yulin China Oona Chaplin.

A stock broker will charge you commission on trades, which may be several percentage points of what you invest. The commission fees generally make this an unacceptable option when you are investing small amounts of money. You have to remember with a stock broker that the broker doesn't make money unless he's making trades for your account unless there is a fee arrangement of some sort.

For small amounts of money, mutual funds are probably more reasonable. The pros of mutual funds is that they are a generally low-cost way to invest across several different companies, and there are professional investors who get paid well to make good investment decisions.

Using A Stock Broker | Investogram

My best advice for you would be to explore low cost ETF Exchange Traded Funds products that would give you exposure to the market. There are also funds that track bond indices, like the Lehman Aggregate index, but assuming that you are younger, you don't really need to have much exposure to bonds right now. This probably sounds kind of confusing, but the key point here is that stock brokers and mutual fund companies charge high fees and rarely beat the broad market indices.

That's much easier said than done. Mutual funds are good for people who do not want to take care of buying and selling their stocks all the time. Instead either a fund manager does that or the fund is an index fund. Managed funds have a higher expense ration, index funds can be cheap.

The yields - really that depends on the fund or funds you chose. Mutual funds are meant as longterm investments and medium risk.

If you want to play risky you should invest in stocks or ETFs - just because you can play that market then better and faster. Some markets - like emerging markets - make sense to have a managed fund. Just because such a manager often knows a specific market China for example really well. Better than you can ever know. And then there are "ETFs" Exchange traded funds. Which are like funds - just you can trade them like stocks directly. They have cheap expenses normally too. I am too busy with my job and other things so I just have a few mutual funds and picked them: Most stars 4 or 5 , least expense ratio and a variety so I am diversified.

I am happy with that. Before that I had a couple of stocks and did a really poor job on watching them and selling and buying, so I lost almost everything when the companies went out of business and I had not looked into my portfolio for some months So - for me- never stocks again. It is a personality question, I am not a control freak enough and rather delegate such tasks. Penny Stocks Trading http: I wouldn't hire a broker to manage money for you.

Most mutual funds don't beat index funds over the long haul.

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Many people look at track records of mutual funds, but some research I saw while I was in school said that even ten year records aren't a good indicator of future performance for a fund. I also think that trying to pick a mutual fund that will beat an index fund is a losing game.

Pros and Cons of Using Full-Service Stock Brokers - dummies

If you really enjoy puzzles and games, and figuring out how things work Hiring a broker these days is too expensive. It is best to research and learn what you are doing and just invest your self with a deep discount online broker. It will save you lots of money, and you'll gain lots of knowledge and insight as well.

Here is a great discount broker: Here is a good page to learn investing online for the first time: How To Hire A Broker.

Or buy SPY through a discount broker.

Picking Your First Broker | Investopedia

This penny stock service has years of proven experience. Ultimately it is the best service for beginners to use https: When I signed up it took 8 days.

I wished it was faster, but if you can wait a week or two to start earn life changing money than you will have what it takes to make it in this business. Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. I am sure that you can get your answers in this website. Never thought too much about that. Find the Best VoIP Providers! Related Questions Are Mutual Funds a good way of investing? What are the pros and cons of investing this way?

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If one bought an island and developed it into a resort are they guaranteed success? What happens to mutual fund stocks that are managed by a mutual fund advisor if I want to move to a different state? Which carries more risk. Buying a rental house or div. Paying stocks like GE, PFE, INTC or T? I'm 21 and I only have 12, dollars in the bank. Should I be worried? Terms Privacy AdChoices RSS.