Brokers and Online Trading: Conclusion
AAA
  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. Exchange Traded Derivative

    A financial instrument whose value is based on the value of another ...
  2. Catastrophe Equity Put (CatEPut)

    Catastrophe equity puts are used to ensure that insurance companies ...
  3. Open Trade Equity (OTE)

    Open trade equity (OTE) is the equity in an open futures contract.
  4. Bid Wanted

    An announcement by an investor who holds a security that he or ...
  5. Multibank Holding Company

    A company that owns or controls two or more banks. Mutlibank ...
  6. Short Put

    A type of strategy regarding a put option, which is a contract ...
  1. How can an investor profit from the increase in popularity of discount brokerages?

    Find out how investors benefit when brokerages compete with each other, and how discount brokerages are changing the market ...
  2. If a long call is owned on the record date of a stock, is the owner of the option ...

    Learn how holding a long call option does not entitle the holder to a dividend on the underlying stock unless the call is ...
  3. How can an investor profit from the cyclical nature of the electronics sector?

    Learn how sector rotation and clever options strategies, such as the long straddle, help investors profit from the cyclical ...
  4. What does negative vega mean for credit spreads?

    Learn about the option Greek vega, credit spreads and how vega affects the values of option credit spreads when volatility ...

You May Also Like

Related Tutorials
  1. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  2. Economics

    American Depositary Receipt Basics

  3. Investing Basics

    Stock Basics Tutorial

  4. Options & Futures

    Binary Options Tutorial

  5. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

Trading Center