What kind of an investor are you?

Investors are a dime a dozen, and there are countless ways to invest money into thousands of different markets. Successful investors are knowledgeable in multiple markets, generally specializing in more than one, so as not to keep all their money in one place. When first starting out in investing, it may be a good idea to look into an investment club which provides many opportunities for the new investor. 

There are five types of investors that fit well within the investment club structure:

1. The "I'm not ready to go out on my own!" Investor: This investor is someone who just does not yet have the expertise or knowledge required to be successful in any market. By participating in an investment club, this investor will learn from a pool of like-minded people on how best to invest their money, make smart financial decisions, and manage their money.

2. The "I am passionate about learning new things!" Investor: This investor is a person that loves to continually expand their world with new things, new ideas, and new people. Investment clubs are designed to explore the wide world of investing and educate members by having them participate first-hand.

3. The "I love to socialize AND make money!" Investor: Some people join investment clubs simply because they enjoy meeting new people, team problem-solving, team planning. With online investment clubs being all the rage, people from anywhere in the world are able to participate, pool their resources, and have fun doing it.

4. The "I want to make extra money for college/retirement/vacations" Investor: These days, it seems that everyone is looking for ways to supplement their income. It could be to pay for tuition or plan retirement or even to add to a limited income due to retirement. An investing club offers direction and education, and that helps avoid the dangers of a trial and error approach.

5. The "I want to invest but do not have a large amount of funds to start with" Investor: Most people don't have large sums of money sitting around, but they do have an extra $20 a month to add to a pool of money to be invested as a whole. Given that starting out alone with such a small initial outlay can prove near impossible, pooling resources with an investment club is an ideal solution.

It is impossible to categorize all the different types of investors, but as the need for supplemental income increases, more and more people are looking for solutions to their financial needs.  Most people don't even know that investing could be their solution to their needs. If you are new to the world of investing, or perhaps unsure whether or not it is even a feasible and affordable option, it is definitely worth considering joining an investment club.

Setting up your Brokerage Account- "The Popular 3"

This is one of the trickiest things sometimes, but sometimes it's the easiest... It all depends on your broker...

Most online brokers have a "sign up" or "open account" option somewhere on the site. When you click on that it will ask you what type of brokerage account.... There are 3 main types:

- Individual Account - This is designated for one person, over 18.
-Dual or Joint Account - These are if you are married, or if you are over 18 and would like to share your account with someone, and have equal power over it.
-Custodial Account - This type of an account it designed so that it is in the name of that person under 18 it is still your parents option to allow you to run it or not, though I am assuming they will.

If you are a teenage investor then you are looking at a Custodial Account, some brokers have these and some not. Say for example, Sharebuilder does, but Zecco does not. If you would like to trade with Zecco and not Sharebuilder then you will have to have your parent open it in their name, and allow you to use it as yours, but it is still under your name.

Also, just to remember if your parent already has a brokerage account, make sure that they know that they can have multiple accounts, it's not illegal, it's actually legal.


There are many other types of Brokerage accounts such as ESA (Educational Savings Account), or IRA (Individual Retirement Account), I will not go into detail on these accounts for the moment since they are not apart of the "Popular 3".

Finding a Good Broker

So now that you have the cash saved up to start investing you need to figure out who your going to use to get it into the market, and to do that you need a broker.

Brokers are very important things, and need to be selected taking your time and with some thought.

When I looked at brokers I classified them into three different sections:

-High Cost (higher fees, most of the time they are more "seniored", they are the oldies at doing it)
-Middle Cost (higher start up costs, minimum account money requirements...)
-Low Cost (these brokers are new at it, normally have no account minimums, maybe not the best platforms etc)

Now, let's explain these one by one....

High Cost Broker

This type of broker has higher costs to invest, but normally they have better resources and have more "ease of use". These brokers have also been out there a long time, normally they won't have the technical "difficulties" or the horrible customer service. These could be brokers such as "Scottrade", "T. Rowe Price", "eTrade",and "Ameritrade".

Middle Cost Brokers

This type of broker is normally the one right in the middle. They don't have real high fees, but they might have some account minimums and "opening" costs.
Some examples: "ShareBuilder", and "Options House".

Low Cost or "Best Value" Brokers

These kinds of brokers are newer to the "marketplace" of brokers, have low fees, possibly not the best platforms, but they work and have the bare minimums.
These might be: "Zecco", and a few others that you might find, there are not many of these.

What I Think....

Here are a few things I would recommend...

-If you are just starting out go with someone like "Sharebuilder", I had an account with them for a year or so while starting out, they offer cheap enough trades, have great customer support for people with "questions' and they have great support forums etc. so you don't need to feel dumb if asking one of those "should be obvious" questions...

-If you are someone who has been doing this for a while but needs a good inexpensive but still competent way of trading try "Zecco". These people are very professional, have tons of options, and their site by my opinion is one of the best out there. It is superbly fast and easy enough to use.
They also have 3 ways to get customer support, Live chat, Call, or email. There is an interesting "social" side of the site, which allows you the investor to speak with other investors, ask questions and see what other people are investing in.

Overall I would recommend Zecco, they also give out free trades!!!