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Wednesday, September 16, 2009

Discount Stock Brokers



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Discount Stock Brokers

Discount stock brokers are individuals offering services for a variety of trades at discounted prices. Their position permits them straight access to the share market. Discount stock brokers are ideal for those who know the trade industry well and do not need extensive information about the market. Since an investor can obtain high discounts, these brokering services are very significant.

Discount stock brokers do not provide any investment advice. They only arrange the stocks demanded at a discounted rate. The brokers take an order and do not make commission. In other words, discount stock brokers earn money by selling massive amounts of stock. Their services also permit the shareholder to invest some savings back into the market for a return.

Technological advancement and the popularity of computers facilitate almost any business deal from home, via the Internet. Stock brokering is also pretty simple to do online. Several companies on the Internet allow users to sign up, complete the application process and start trading within a few days. The online stockbrokers are mainly discount online stockbrokers and full-service online stockbrokers.

Discount online stock brokers - licensed to trade in shares - are popular with today's online investors. They offer an execution service for a variety of trades with lower fees than the full service agencies. Before making a decision about investments, it is wise to contact several agencies requesting information on fees, because all online stock brokers are highly competitive.

Full-service online stock brokers can provide far more stocks and products compared to discount brokers. They also help in all share related activities, such as buying shares, creating a safe investment portfolio, and investment advice. These service providers are mostly paid by commission, hence they will work harder to satisfy the investor.

An investor opting for a discount broker has to know the market industry well, since the agent does not provide advice on what or when to buy sell, or trade. The person should ideally possess knowledge in the market. A stockholder can work with multiple discount brokers at the same time.

Discount Stock Brokers

Save Your Money With Discount Stock Brokers



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Discount Stock Brokers

It is hard enough to make money in the stock market. Many have picked the right stock, sold at the right time, only to see a good percent of their profits go to their broker. Even more painful is watching this money be paid for large commissions on a losing trade. There is no longer a need for this to happen with the proliferation of discount stock brokers.

In the early days of Wall Street there were only full service brokers. A full service broker would give you advice, select your stocks for you, and place your trades. This would often come at a steep price. Not only in terms of commissions but also in the form of bad, sometimes self serving, stock picks.

For many years this was the case. You had to call your broker, wait on hold, the only have him forget your name upon answering. Service often fell short of "full" but commissions but fees did not. Recently, however, this all changed. With the advent of the Internet the choices have expanded.

Today, there are a list of available brokerages as long as your arm. The old style full service brokers still exist. For those with very high net worth receiving advantageous terms and access to special opportunities like IPO's it may be worth it. However, for the rest of us, it is not. Most of us should look for a good discount brokerage.

There are many factors to consider in this search. The first is commissions. Analyze closely the various commission structures as they can be tricky. Look at a base rate fee. Scrutinize the applicable per share charges, if any. Calculate what the commission would be in different trading scenarios. Most importantly, gauge what the resulting commission rates would be assuming your given trading style.

Other fees can be present. Look at fees associated with deposits and withdrawals. Look at others which can be triggered by account inactivity. The form of the fees are limited only by the imagination of those who devise them. Do not be tricked by a surprisingly low commission rate only to be socked with hidden fees.

The next important factor are executions. Low commissions and fees can be quickly made moot if a trade with that given brokerage takes 2 hours to execute. Speed of execution can be critical. This is especially so for those prone to trade a lot seeking defined entry and exit points. It is akin to running a race carrying a large rock.

There are many choices for you. Discount stock brokers have low commissions and fees. Some even offer free trades with various stipulations. Whichever you choose, be a smart consumer. Do your research, read independent reviews, and keep your profits for your family, not your broker!

Discount Stock Brokers

Tips on Comparing Online Discount Stock Brokers



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Discount Stock Brokers

In recent years investing in the stock market has become easy and accessible. In the past, investing was complicated and expensive. To buy stock, an investor needed access to a broker. Brokers would charge substantial fees and would place buying orders directly to the stock exchange. With the advent of the digital age and the internet this archaic model has been replaced. Investors have more tools, more efficiency, and more control over how and when they invest. Automatic limit purchases, streaming stock data, and other on-the-fly reporting has made day trading and short window option purchases possible. Gone are the days of checking your stock in the newspaper or hearing your stock price reported on the radio.

Now that we've arrived in a new age of investing the question becomes "How do you choose a discount stock broker?". Other questions you might have are "Do I need all the features more expensive brokers provide?" "What are the major differences between expensive and low cost brokers?" With that in mind lets explore the major areas of difference between online brokers.

Trading Costs - You can expect to pay anywhere between $25 and $3 for each trade you make. Some brokers reward buy and hold strategy by making the purchase of stock very cheap and the sell of stock more expensive. This allows

Fees - This is one area that really differs from one broker to the next. If you have an established trading pattern it is well worth your time to find a broker that works with your habits. If you are opening an IRA look for a broker that has no maintenance fee or inactivity fee. Some brokers will pay part or all of your transfer fees if you switch to them. The more expensive non-discount brokers will charge you if you sneeze. Gone are the days of paying too much for the exact same service. If you are a mutual fund trader look for brokers that provide a fair rate on those trades. If you day-trade or dabble in options check your contract fees and trading fees. If you require a margin account find what the interest rate will be on each of the accounts and the dollar amount you'll need for the best rates. The best advice here is to look around. You can do a lot of research in a small amount of time online.

Research - Timely thorough research helps build winning portfolios. Some research is extremely expensive. Some of the higher priced brokers provide premium research and reports for free. These same brokers also require a minimum balance and charge you every time you blink. With a down economy and the stock market at fourteen year low paying extra fees can add even more pain.

Trading Tools - Each broker provides a different and more customized set of tools for their customer base. Look closely at the tools and some of the limitations of each. One broker might provide a better tool but might have features that seriously handicap your trading style. While every broker might have the same tool the tools functionality might be completely different. Try to setup a test account in a few of the most interesting brokers and find one that works for you.

Discount Stock Brokers

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