Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on the fundamentals of successful investing. Each Investor Toolkit update gives you a new fundamental tip and shows you how you can put it into practice right away.

Today’s tip: “Time spent finding a good stock broker can be an excellent investment.”

Investors often ask us to refer them to a good full-service stock broker. Stock brokers are now more commonly referred to as “investment advisors.” But good stock brokers or investment advisors have always been hard to find. We mainly only hear about them after they’ve retired, when investors complain about the bad brokers who have taken over their accounts.

However, if you’ve decided that a full-service stock broker is right for you, here are some tips to help you pick a broker who can contribute to your investment success.

• Choose a stock broker who specializes in your kind of investments. Some brokers focus on risky areas, such as penny mines or options. Others mainly sell stocks, bonds and mutual funds. They’ll bring little enthusiasm or expertise to areas outside their specialty. If your broker’s interests differ from yours, get a new broker.

Invest in your Financial Future for FREE Learn everything you need to know in '9 Secrets of Successful Wealth Management' for FREE from The Successful Investor. Secrets of Successful Wealth Management: 9 steps to the life you've always wanted, before and after retirement.  I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

• Choose a stock broker who will value your business. A broker who mainly handles million-dollar clients may agree to handle your $100,000 RRSP account. But don’t be surprised if you wind up dealing with his or her fresh-out-of-school assistant.
• Ask lots of questions. Some of the world’s worst brokers are the most charming, most glib, nicest-looking and best-dressed people you ever met. When you judge investment knowledge, look deep. Anybody of average intelligence can develop a veneer of investment expertise. Ignore appearances and use the “encyclopedia buyer’s trick”: ask questions to which you know the answers.
• Put a high value on experience. Bad brokers are not necessarily bad people. Some give bad advice because they earn more commission that way. Others are inexperienced and just don’t know any better. But the longer an individual works as a stock broker, the more he or she can tell you about risk, and that’s essential for successful investing.

Next Wednesday, June 9, 2010, Investor Toolkit will examine the subtle hints that can tell you if a company is headed for disaster.

As a member of TSI Network, you may have already seen Canadian Stock Market Basics: How to Trade Stocks and Make Good Investments in Canada. If you haven’t yet read this free report report, click here to download your copy today. I’d also encourage you to share the report with a friend by forwarding this email to them. It’s my “thank you” just for signing up for my free daily updates.