Brokers and Online Trading: Conclusion
  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: Conclusion


One of the most important investment decisions you will make has nothing to do with which stock, bond or mutual fund you buy. We're talking about selecting a broker. Hopefully the information in this tutorial will assist you in your search.

Let's recap:

  • Brokers are the people who handle customer orders to buy and sell securities.
  • Don't forget that a broker is a salesperson.
  • Minimum balances required to open an account range from thousands of dollars to nothing at all.
  • All brokerages charge commissions to execute orders. This fee varies widely depending on the type of brokerage.
  • Look out for hidden fees for transactions like the transfer of assets or inactivity.
  • Full-service brokers offer much more, but they're expensive.
  • Discount brokers don't offer the extras, but they're affordable.
  • Online brokerages have changed the industry by lowering costs and blurring the line between discount and full-service.
  • The type of brokerage you require depends on your investing style.
  • It's possible to check the background of all brokers and firms.
  • The type of account you need depends on the type of securities you want to hold.
  • There are many ways to execute an equity order.

  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. Full-Service Broker

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

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

    A service charge assessed by a broker or investment advisor in ...
  4. Brokerage Account

    An arrangement between an investor and a licensed brokerage firm ...
  5. Firm Order

    1. A market order to buy or sell a security for a brokerage's ...
  6. Executing Broker

    The broker or dealer that finalizes and processes an order on ...
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  3. I want to start buying stocks. Where do I start?

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