After these business details are settled, your club can consider its next major decision. Finding a Broker. Every investment club needs to work with a broker. 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. However, it s a good idea to investigate several 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, a discount broker does not charge the same commission as a full time broker.

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. Investment Club - Read More.