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.
- 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.
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