• Choosing the right investment broker can make a huge difference in your finances. Finding an investment broker who truly has your best interests at heart can help you get on the road to financial freedom, while choosing an adviser with ulterior motives could leave you considerably poorer than when you started. Knowing which questions to ask can help you choose the best investment broker for your situation.
  
  

How Are You Compensated?

• Finding out how a potential investment broker is compensated is critical. There are three different categories for investment brokers -- commission, fee-based and fee only, according to the Commonwealth of Massachusetts government website. Commission brokers work strictly on commission, taking a percentage from each investment they recommend. This can obviously lead to conflicts of interest, and clients can never be sure the recommendations they receive are in their best interest. Fee-based investment brokers charge a fee to their clients, but they can also be compensated by commissions from the products they recommend. Fee-only investment brokers, on the other hand, charge a flat or hourly fee to their clients, and they receive no commissions or compensation from the products they recommend.
  
  

How Long Have You Been in Business?

• The background and experience of an investment broker is very important, and clients should ask potential brokers how long they have been in business, where they have worked and their areas of specialty. Learning the background of the adviser is important as well, including which firms the adviser has worked with and his total number of years in the industry.
  
  

What Services Do You Offer?

• Some investment brokers offer only investment services, such as buying and selling stocks and mutual funds. Other firms offer more comprehensive services, including tax planning, estate planning, retirement planning and overall wealth management. Make a list of the services you need before you go shopping for an investment broker, and use that list to choose the broker who best meets your needs.
  
  

Is Your Firm Properly Registered?

• Individuals claiming to be investment brokers must be registered either with the U.S. Securities and Exchange Commission or with the state agency overseeing the financial industry. Each state has its own licensing and reporting requirements for investment professionals, so check with your state before you start shopping for an adviser. Always follow up with the state to make sure the individual or firm you are considering holds the proper registration and licenses needed to do business in your state.