wary of discount brokers selling load mutual funds. I discuss the reasons you should shun these brokers in Chapter 10.Places to consider avoidingThe worst places to invest are those that charge you a lot, have mediocre- or poor-performing investments, and have major conflicts of interest. The prime conflict of interest arises when investment firms pay their brokers commissions on the basis of what and how much they sell. The result The investment firms sell lots of stuff that pays fat commissions, and they churn, or cause a rapid turnover of, your account.
Because each transaction has a fee, the more you buy and sell, the more money they make.Some folks who call themselves financial planners or financial consultants work on commission. In addition to working at the bigger brokerage firms, many of them belong to so-called broker-dealer networks, which provide back-office support and investment products to sell.