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Discount Brokerage Firms for Investing

Discount brokerage firms offer great financial services to credit union members by managing their portfolios and helping with investments.

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Many people refrain from joining a credit union due to various reasons which puts them off from seeing the true benefits and service offered. The big myth is that it is hard to join a credit union, but this is not the fact because many local communities have one which are easier to join. Another issue people see with credit unions is that ATMs are limited, but credit unions have started to branch their networks allowing ease of access. Credit unions also provide the same benefit and services as a bank. People are not knowledgeable about the service provided by credit unions since they are not advertised as much as banking services. Credit union members usually can receive a greater benefit because of the return on savings since they are considered a shareholder of the credit union.

The benefits that most members don’t realize their credit union offers are investing services. These services can be really beneficial to members who have retired and are looking for an alternative to a paycheck which can possibly be a return on their investments. The investment services most credit unions provide are through a partnership with a third-party discount brokerage firm. These firms provide services which include helping members with investing in stocks, bonds, and mutual funds. After researching some credit unions and discount brokerage firms, I found a list of a few which offer great investment services at a low rate.

  • CUNA Mutual Group offers brokerage services through a broker-dealer located in all states
  • Credit Union Investment Services (CUIS) only charges an asset-based fee of .25%
  • CUSO Financial Services is an affordable alternative which serves around 150 credit unions
  • BestVest doesn’t require a minimum balance and it doesn’t charge for account closing fees

What is a provocation or insight that might inspire others during this challenge?

An alternative to just managing your finances for bills is to invest a small portion of it at a time to receive a return on it. Many elderly people are afraid of taking this risk without an advisor because this money is usually from retirement funds. We should try to educate elderly on credit unions and specifically the investment services they offer.

Tell us about your work experience:

I am currently a student at the University of Texas at Austin studying Management Information Systems.

Specifically, please check all that apply:

  • I'm currently a member of a credit union

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Photo of Alif

Accessibility is the biggest myth about credit unions and only suits certain people, like people who are nearing retirement. I think using credit unions to help people nearing the "retirement" age is a good avenue to pursue. Good work!

Photo of Aliza

This post really helps me understand that people are just lacking knowledge on the services that credit unions provide.  Investing can be really important and the list of discount brokerage firms that provide these services was helpful in understanding the role they play in a credit union.