ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Choose an Investment Firm

Updated on August 2, 2013

Choosing an investment firm to safeguard and serve your financial needs and investments can be a daunting experience and doesn't need to be a craps shoot. The following are some key steps to help choose an investment firm right for you.


The first step in your search for an investment firm can start with a friend or family member who might have similar needs and goals as you and has had a positive experience with their investment firm. Their recommendation can save you a lot of research.


In choosing an investment firm, keep in mind, just because a firm is the biggest in terms of the assets they manage, doesn't mean they're the best. In fact, depending on your situation and the size of your investment portfolio, it might work against you. If your portfolio is $50,000, then you would be considered a small investor at the bigger firms and won't get the attention and service you deserve.


In your search you will come across larger investment firms such as Merrill Lynch, Morgan Stanley, etc. There are medium market firms such as Ameriprise, Raymond James, etc. and there are many independent, smaller investment firms. Banks and Insurance companies also promote themselves as investment counselors, but be wary, since they usually have proprietary products and a limited menu of investment options. Insurance companies will also tend to recommend - surprise, surprise - insurance.


The Financial Industry Regulatory Authority, or FINRA, is the largest independent securities regulator in the U.S. Its main role is to protect investors by maintaining the fairness of the U.S. capital markets and acts as a regulator for all securities firms doing business in the United States. You can go to (see Related Links) to research the professional backgrounds and track records of registered investment firms and individual financial advisors.


Keep in mind, financial advisors who work at larger and medium sized investment firms are typically employees who have to report to the management of their firm. Advisors have the research and support of these billion dollar companies, but also have to deal with management steering them in a direction that is best for the profitability of the firm. Advisors in smaller, independent investment firms are typically business owners who run the day to day management of their firms. They decide what direction would best serve the company and their clients, but have to do their own research and hire the support necessary to serve their clients. There are pros and cons to both options, and one is not necessarily better than the other. They can all offer similar investments and products. It may come down to choosing which option you feel most comfortable with.


Financial advisors or financial planners can be more important than the investment firm itself. Most advisors offer free consultations to discuss your needs. But, be aware, many advisor's may have a minimum requirement in terms of portfolio amounts. And remember, many of the financial firms offer the same mutual funds, annuities, stocks, etc. It's the advisor's job to select investments that are right for the investor. He or she needs to filter through the hundreds of options they have available and pick the ones appropriate for the individual investor.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)