This is a thoughtfully written, helpful book that explains the hows and why's of working with stockbrokers. The author is a former broker with over twelve years' experience in the industry. Without warning against all brokers, he provides basic explanations for how brokers work, how brokerage accounts work, and how and why they can go wrong. A short, "no bones" read, it is thorough without being too detailed, dispassionate without being boring. Lewins gives much pithy, practical advice, intended to help the reader think for himself, reminiscent of the old adage, "Give a man a fish and he'll eat for a day; teach a man to fish and he'll eat for a lifetime." He covers all essential territory - how to know if you need a broker, types of brokers, how they make money, how to find a good one, what to expect from one, how to fill out documents, what they mean (and what not to put in them), and how to recognize and deal with problems that arise. He explains how brokers make money, points out that brokers and brokerage houses profit from volume of trades rather than wise investment strategies, tells how to evaluate investment recommendations, how to listen for what you need to know rather than just accepting a sales pitch, cold calls, seminars, walk-ins, affinity groups, fee-based brokers, commissions, complaints, discretionary authority and so on. If you read this book and follow Lewins' advice, you will know whether to use a broker or not. If you use one, you will become an active, well-informed and appropriately careful client. Lewins, who is an attorney, also tells investors how to begin to evaluate if they have a claim against a broker. He covers why and how to select an attorney, explains the arbitration process, and describes some of the claims that can arise, including whether an investment is suitable, Ponzi or Madoff style schemes, and "selling away" (where a broker sells products not offered through his own firm). There is a brief, helpful checklist in the conclusion. All in all, "How to Keep From Going Broke With a Broker" is short (96 pages), solid, and very practical, written by someone who knows what he is talking about.
