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The best advice about How to Start an Investment Club for Fun and Profit

Finding a Broker

Your investment club will have to find an investment broker to work with. You can delegate someone to come up with some broker choices and then take a final vote for your decision.

Many investment clubs will use a full-time broker who guides them and offers advice at the occasional meeting. If you don't want to use a broker on a full-time basis you can use what is known as a discount broker.

A discount broker will give you some detailed information about stocks but won't give you advice about what to sell or buy. Using a discount broker seems to be the more popular choice since the purpose of the investment club is to make your own decisions about what stocks you're going to be dealing with.

When you use a discount broker you won't have to pay a huge commission to a full time broker.

Your club will have to take a vote and decide what is in the interest of the majority.

You might also want to think about using the services of an online broker.

Online discount brokers will have low commissions that can be a benefit to your club when it comes to the way you handle your finances. On average an online broker will be up to $8 or less per transaction.