Choosing A Broker
Thursday, December 14th, 2006
If you’re investing in stocks, you need to go through a stock broker. Years ago, there was only one kind of broker; a “full service” broker, who in addition to trading stocks, would also provide personalised advice and planning services.
Some people find this worthwhile, others believe that it adds little or no value. Full service brokers typically charge higher fees and commissions for stock trade, to cover their expenses incurred in providing a personalised service.
Charles Schwab was among the earliest of the “discount brokers” - brokers who charged significantly lower fees, but only provided the trading service, no more. With the growth of the internet, numerous discount brokers are accessible, with the ability to trade any time, any where.
Unless you’re having huge blocks of shares to trade at a time, chances are you’ll find a discount broker makes more sense. All the more so given the plethora of financial information accessible through the internet, through sites like ours.
By and large, most discount brokers tend to have similar offerings; but there can be some differences in the tools provided and the online experience. Try out a few, to decide on which one you’d like to use. Broker reviews and ratings may also help you select the best one for your needs.
Leave a Reply
You must be logged in to post a comment.