How to choose the right Investment Provider without burning the midnight oil

Let’s say you’ve got some cash to invest, but you’re unsure what your investment options are, or you have the knowledge but don’t have the know-how to put it into action. It’s time to consider an Investment Provider.

An Investment Provider helps guide the customers by offering them an opportunity to purchase specific assets or products or invest in certain strategies. It is up to the customer to accept the options and the provider fulfils the requests. They help manage portfolios, assets, analyse the market and give assistance in minimising risk.

Identify your investment goals

While the financial realm may present itself as ambiguous, by prioritising your goals you can define a clear standard of what you want to achieve with a provider. By knowing what your goals are, a provider can assist you and create a healthy balance between your risk and safety net. A full-service investment firm can act as a wingman to point you in the right direction. A good advisor can also assist you on your journey and point out potentially problematic investments.

Wes Brown, a CFP at CogentBlue Wealth Advisors, said: “I think there’s value in an ongoing relationship where somebody can help you walk through the various waypoints you’re going to come to”.

The three pillars: Research, Research, Research

Selecting a provider is all in the research. You need to know what you’re looking for and receive advice from people who know what they are talking about. For example, do you want to invest in a savings platform? Or, do you want to trade stocks, bonds and investment funds? If you want to do stocks, do you want access to overseas markets, do you want to buy gold or secure derivative investments like options and futures? These might be good questions to look into whilst in pursuit of an investment provider.

​​These investment firms can help you master investing

• Personal Finance: Vanguard Personal Advisor Services
• ETFs: Charles Schwab
• Art Investments: Masterworks
• Goal Tracking: Merrill Edge
• IRAs: Fidelity Investments
• Low-Cost Advising: Facet Wealth

The cold reality: Fees

Fees are inevitable in the world of investing, but in the long haul, you’re going to benefit more from the services with the fees than without. Remember that to make money you have to spend money and if you’re not paying for the product you are the product. Check out our article on Robinhood to learn more about commission-free trading.

Most of the time there is an account opening fee because you can’t try a service without a payment involved. There are some platforms out there that don’t charge a fee. If you are a first-time investor, you may want to go with those. There will also be a minimum deposit which is where you agree to deposit a certain amount of cash. There are some platforms that charge a flat fee for their service. Inevitably, there are going to be ongoing fees like trading and withdrawal fees. No one likes fees. But in some cases, they may be worth it: e.g., when it’s going to an investment agency that is quite literally handling your wealth.

To sum up

Do your research into the agency. Make sure it’s regulated, meaning that the provider is registered with the Financial Conduct Authority (UK) or an equivalent authority in other countries. Do research into system security, check that the provider answers all your questions regarding your security concerns. Also, find out if the provider has a positive customer satisfaction rate by looking at reviews online. You want to work with someone who meets your requirements and professes a personal approach in communication.