DO YOU KNOW HOW TO CHOOSE A GOOD BROKER ?

Your choice of broker should reflect your investment style—whether you lean toward active trading or a more passive, buy-and-hold approach.

Always make sure your broker is fully licensed by state regulatory authorities and FINRA and registered (individually or via their firm) with the SEC.

Key questions to ask a broker include "How do you charge for your services?" and "Do you hold yourself to a fiduciary standard or suitability standard?"

Robo-advisors can be a cheaper alternative to human brokers but don't allow for advice or participation on your part.

Research robo-advisors because some are tailored toward different audiences (for example, there are robo-advisors specifically geared toward women).

There are two types of brokers: regular brokers who deal directly with their clients and broker-resellers who act as intermediaries between the client and a more prominent broker.

Regular brokers are generally held in higher regard than broker-resellers. That's not to say that all resellers are inherently bad, it's just that you need to check them out before you sign up. Regular brokers such as those who work for TD Ameritrade, Capital One, and Fidelity are members of recognized organizations such as the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).

A broker is an intermediary between an investor and a securities exchange—the marketplace where financial assets are bought and sold. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, you need a broker to trade for you—that is, to execute buy and sell orders. Brokers provide that service and are compensated either through commissions, fees, or payment by the exchange itself.

A broker may just be an order taker, executing the trades that you, the client, want to make. But nowadays, many brokers style themselves as "financial advisors" or "financial representatives" and do much more. As well as executing client orders, brokers may provide investors with research, investment planning and recommendations, and market intelligence.