Brokers and Online Trading: Choosing A Broker
  1. Brokers and Online Trading: Introduction
  2. Brokers and Online Trading: What Does A Broker Do?
  3. Brokers and Online Trading: The Costs
  4. Brokers and Online Trading: Full Service Or Discount?
  5. Brokers and Online Trading: Choosing A Broker
  6. Brokers and Online Trading: Accounts And Orders
  7. Brokers and Online Trading: Conclusion

Brokers and Online Trading: Choosing A Broker


What's Your Style?
Deciding whether you need full-service or discount is your first step. The choice is up to you, but taking charge of your own portfolio can be a very rewarding and profitable experience.

On the other hand, full-service brokers also have their time and place. Although you'll pay more, losing money on commissions is better than wiping out your portfolio because you don't understand the market. The bottom line is that the type of broker you choose should be based on your individual needs.

Check the Background
The next step is to check the background of the firm and/or broker for any past disciplinary problems.

Securities regulators have made this information relatively accessible through the Central Registration Depository (CRD), a disciplinary and employment database available from NASD Regulation. You can perform online searches on the NASDR website for certain information and request that a detailed report be sent to you.

You can also ask your state securities regulator to provide you with information from the CRD. The North American Securities Administrators Association website has info on how to get in touch with state regulators.

We apologize to visitors from outside the United States. This information is U.S. specific. We suggest you contact regulators in your home country for information on how to check the background of brokers.

Brokers and Online Trading: Accounts And Orders

  1. Brokers and Online Trading: Introduction
  2. Brokers and Online Trading: What Does A Broker Do?
  3. Brokers and Online Trading: The Costs
  4. Brokers and Online Trading: Full Service Or Discount?
  5. Brokers and Online Trading: Choosing A Broker
  6. Brokers and Online Trading: Accounts And Orders
  7. Brokers and Online Trading: Conclusion
RELATED TERMS
  1. Central Registration Depository (CRD)

    A database used by the National Association Of Securities Dealers ...
  2. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  3. Discount Broker

    A stockbroker who carries out buy and sell orders at a reduced ...
  4. Give Up

    A procedure in securities or commodities trading where the executing ...
  5. Carrying Broker

    A commodities or securities broker who provides back office functions ...
  6. Forex Broker

    Firms that provide currency traders with access to a trading ...
RELATED FAQS
  1. I'm new to this. Can I sell or buy stock by myself?

    In order to buy stocks, you need the assistance of a stock broker since you cannot just phone up a company and ask to buy ... Read Answer >>
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    If you decide that you have the knowledge and experience to take on stock investing, or if you feel you would like to give ... Read Answer >>
  3. My broker just sold securities out of my account without my permission. Is this legal?

    Your broker's actions are not legal unless he or she sold the securities under certain conditions. Let's look at the two ... Read Answer >>
  4. I want to start buying stocks. Where do I start?

    Before you jump into buying stock, first take the time to learn what type of broker-dealer may be right for you. Read Answer >>
  5. Why do brokers ask for personal information before they make any trades?

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