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.
InvestingA stockbroker who carries out buy and sell orders at a reduced commission compared to a full-service broker, but provides no investment advice.
InvestingA discount broker is a stockbroker that does not offer clients investment advice, but trades shares for a smaller commission than a full-service broker.
Financial AdvisorWhat you need to know about fees when choosing between a full service and discount broker.
InvestingKnow the four main avenues of buying and selling investment instruments.
InvestingEven discount brokers can hit you with some fees that seem unnecessary; here are some to watch out for.
InvestingWhile discount brokers are the perfect choice for some investors, their business model could be detrimental to others.
TradingFind out the various ways in which a broker can fill an order, which can affect costs.
TradingWhile the forex market is slowly becoming more regulated, there are many unscrupulous brokers who should not be in business.
TradingA day in the life of a broker or trader is an exciting and varied one. Find out how to decide between these two financial professions.