Open a Brokerage Account
As a BetterInvesting club you should strive to keep your costs associated with your stocks investments to a minimum in order to maximize your return on investment.In this step you need to make a determination as to where and with whom to commit your club’s investment dollars. Opening a brokerage account requires some research on the part of the club. There are three types of brokerage accounts that have distinct structural differences. Your basic decision will be the trade-off between transaction costs versus services provided. If you require more services and support, you will pay more. If you want lower transaction costs and can live with minimal services, you will pay less! For information read the three types of brokerages.
Club Checking AccountEach member of the club brings a check to the monthly meeting. Then, at that meeting, you mutually determine what to do with the pooled money. The club treasurer can endorse member checks over to the club’s broker, and can also write checks on the brokerage account to pay club bills.
However, you may also consider establishing a business account at a local bank where you can deposit member checks, turn them around and send one club check to the broker, parking the leftover funds until needed. Review a description of different types of financial institutions.
Depending on the brokerage service you choose, you may or may not need to open a checking account in the club’s name in order to conduct the financial transactions of the club. Research the various types and choose what’s in the best interest of the club.