After these business details are settled, your club can consider its next major decision. Finding stock brokers. Every investment club needs to work with an acceptable broker and to find one you will need to look at a number of stock brokers. No one member of the club is going to be able to provide the constant watch on the markets that is necessary to provide up-to-date information on the stocks that your club may be considering. It’s a good idea to investigate several stock brokers, of different types and have the club meet to discuss the various options before making any decisions. While many investment clubs will use a full-time broker who guides them and offers advice at the occasional meeting, others prefer to use a discount broker.

A discount broker will give the club some detailed information about stocks but won’t give any advice about what to sell or buy. Using a discount broker is generally a more popular choice since the purpose of most investment club is to make their own decisions about what stocks they want to be dealing with. In addition, discount brokers do not charge the same commission as a full time stock brokers. 

The club may also want to consider using the services of an online broker. Online discount brokers will have low commissions that can be a financial benefit to your club. On average an online broker will charge $8 or less per transaction.

If your club decides to use a discount broker you’ll need to know how to find one. However, it won’t matter too much what discount broker you decide to use so long as your club is allowed to pick your own stocks.

The club should delegate one or two members to find the best stock brokers that they can find, discount or otherwise, both on the Internet and locally.  Since there is a great deal of competition when it comes to discount brokers the club will be able to get some great deals in broker fees if you take the time to look for them.