When you make big, financial decisions in your life, you usually weigh all the options and consider all consequences before you jump in feet first, right? Making an investment is no different.

Before making an investment, you must decide which brokerage firm or broker/dealer and stockbroker, account executive, or registered representative to use. Before you make those decisions, though, here are six steps you should take:

-- Think through your financial objectives carefully, and prepare a personal financial profile.

-- Talk with stockbrokers at several firms. Schedule a meeting with them face to face at their offices, if possible. Ask them about their investment experience, professional background, and education.

-- Determine whether you need the services of a full service or a discount brokerage firm. A full service firm typically provides execution services, recommendations, investment advice, and research support. A discount broker generally provides execution services and does not make recommendations regarding which securities you should buy or sell. The charges you pay may differ depending upon what services are provided by the firm.

-- Understand how the stockbroker gets paid. Ask for a copy of the firm's commission schedule. Firms generally pay sales staff based on the amount of money invested by a customer and the number of transactions done in a customer's account.

More compensation may be paid to a stockbroker for selling a firm's own investment products. Ask what "fees" or "charges" you'll be required to pay when opening, maintaining, and closing an account.

-- Find out about the disciplinary history of any brokerage firm and stockbroker by calling 1-800-289-9999, a toll-free hot line operated by the National Association of Securities Dealers, Inc. (NASD). The NASD will provide information on disciplinary actions taken by securities regulators and criminal authorities.

Your state securities regulator also can tell you if a brokerage firm or stockbroker is licensed to do business in your state. Don't skip this important step! If you do business with an unlicensed securities broker or a firm that later goes out of business, there may be no way for you to recover your money, even if an arbitrator or court rules in your favor.

-- Ask if the brokerage firm is a member of the Securities Investor Protection Corporation (SIPC). SIPC provides limited customer protection if a brokerage firm can't pay their debts.

Also ask if the firm has other insurance that provides coverage beyond the SIPC limits. SIPC does not insure against losses due to a decline in the market value of your securities. For further information, you can call SIPC at (202) 371-8300.

Remember, part of making the right investment decision involves finding the brokerage firm and the stockbroker that best meet your personal financial needs. Don't rush. Do the necessary background investigation on both the firm and the stockbroker. Resist those who urge you to immediately open an account with them.

------------------------------------------

Kori Puckett provides more self-help and success oriented articles, which can be found at http://www.KoriPuckett.com. Find out the secrets Wall Street doesn't want you to know about, including the most common, avoidable mistakes traders make. Visit: http://invest.koripuckett.com