What skills should a business look for in an investment broker with whom it is considering doing business?

Written By Steps To Faculty Published July 12th, 2010

When looking at investing, any person who is interested in making your money work for you needs the right investment banker. Clearly, this is a very technical area of expertise and what we want to do is to outline some basic characteristics that an investor can spot when looking to do business with an investment bank – and with an investment banker in particular. Below are three characteristics that you should always look out for when seeking out an investment broker; look for these three things, and your chance of finding the right person skyrocket.

Step 1 – Characteristic 1 Are they ethical?

In the wake of the most recent financial meltdown, ethics is more important than ever before. One of the most under-appreciated things we can do is to assess the ethics of the investment broker with whom we are dealing. Ask yourself these questions: do they appear evasive? Do they fail to provide adequate details? Do they appear dismissive about where you can find information for queries they cannot answer? And what is their general impression of investing in general? At the same time, never fail to look at body language: shifty and evasive eye contact or a defensive posture are two things that always spell trouble.

Step 2 – Characteristic 2 Are they proficient in risk management?

Have they worked in risk management before? Do they understand what it is? Since they are making investments on your behalf, you need people who are prudent and who are aware of the risks; the key thing is to find someone who has done risk management at the firm in the past (even if it was only in an internship capacity) because those are the people who can identify risk as well as opportunity.

Step 3 – Characteristic 3 Do they have some understanding or experience with the back office transactions that occur at their firm?

Back office transactions are significantly important because this is where the “due diligence” occurs in terms of making sure that every ‘I’ has been dotted and every ‘t’ crossed in every transaction. If an investment broker has some experience in this sort of thing, then that is precisely the person with whom you want to work.

At the end of the day, the most important thing you want in a broker is competence coupled with integrity; brilliance is over-rated if that brilliance lacks an ethical compass.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.