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. Discount Broker

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

    A procedure in securities or commodities trading where the executing ...
  4. Commission

    A service charge assessed by a broker or investment advisor in ...
  5. Each Way

    A slang phrase used when a broker earns commissions from both ...
  6. May Day

    Refers to May 1, 1975, when brokerages changed from a fixed commission ...
RELATED FAQS
  1. There are so many stockbrokers out there. How do I go about choosing the best one ...

    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 >>
  2. 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 >>
  3. What is the cheapest, fastest way to research, buy and trade stock?

    Thanks to the internet, there is a huge range of service providers that investors can use to obtain investment research and ... Read Answer >>
  4. How much will it cost me to become a casual investor on my own?

    Understanding the costs associated with becoming a casual investor is important if you want to be successful. It is important ... Read Answer >>
  5. Why choosing the right investment advisor is crucial for your portfolio's health

    Absolutely! Just as finding a good mechanic will help keep your car running smoothly, finding a good broker or financial ... Read Answer >>
  6. My family owns an old railroad bond from 1938. Is there any way to find out whether ...

    That's a tough question, but the short answer is that you are going to have to do some homework. Where should you begin?The ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center