Open an account with an online brokerage firm to invest in closed-end funds

This should be one of your first steps toward investing in closed-end funds. Consider going with an online discount brokerage firm so you don't have to pay high fees. Online brokers also have closed end fund information, including the objectives, price and performance, dividend and investment trusts. Many online brokers are flexible in that you can execute your trade by phone, online, or using a mobile device.

I recommend: TD Ameritrade lets you look at the closed-end fund’s chart over recent months. It also allows you to see the closed-end management investment company and investment trusts. You’ll also want to look at E*Trade Financial, which has all the information you’ll find at TD Ameritrade. However, it has two additional features: analyst research and insider activity. Insider activity gives you insight into seeing who is buying versus selling.

Use the NYSE Euronext and AMEX exchanges as guides for investing in closed-end funds

Both the NYSE Euronext and AMEX exchanges are great resources for closed-end mutual funds. These exchanges are well-known not only in the U.S., but also around the world. They list closed end fund information, such as a closed-end fund's volume, giving you a gauge on the activity. Volume can help you time your buy and sell opportunities. If the volume is light, this might not be a good time to buy. On the other hand, if the volume is heavy, you might want to buy. Of course, you'll want to look at other factors, such as the price.

I recommend: NYSE Euronext shows listed closed-end funds, such as closed-end bond funds and closed-end stock funds. You can click on a closed-end fund to get detailed information, including its listing date, the closed-end management investment company, and other information. You’ll also want to look at AMEX, which lists more than 150 closed-end funds in various industries, including global equity funds and tax-free bonds.

Use investment research market companies to invest in closed-end funds

You can also find in-depth information on closed-end funds on these companies' websites. Studying the analyst's report and its buy and sell recommendations provide great benefits to you. It doesn't hurt to get a second opinion; you can compare your closed-fund's analysis to that of the analyst's. You can customize your search on closed-end funds, based on the category or yearly returns.

I recommend: Check out Morningstar, since it's not only a leader in investment research, but it offers comprehensive analysis on closed-end funds. You must subscribe to the service. ETFConnect also provides information on closed-end funds, including fund sponsors and industry links.