| Discount brokers are individuals or | | | | execute stock and option trades. They |
| companies that carry out trade | | | | trade on AMEX, NYSE, or NASDAX. They |
| executions for a variety of trades. In | | | | also offer free 1-page Standard & Poor's |
| other words, they execute buy and sell | | | | Stock reports. |
| orders at a lower commission rate. | | | | Touch-tone telephone stock quotes, free |
| Discount brokers can be categorized as | | | | check-writing privileges, and |
| discount stock brokers, discount | | | | dividend-reinvestment services are |
| commodity brokers, and discount real | | | | provided 24 hours a day. Some discount |
| estate brokers. Discount stock brokers | | | | brokerage firms provide information on |
| open endless opportunities for those | | | | the current price of stock, volume of |
| interested in stock markets. Discount | | | | the day, current dividend and yield as |
| commodity brokers offer the best trading | | | | well as earning forecasts free of cost. |
| platforms whereas the discount real | | | | To choose a discount broker, one should |
| estate brokers are committed to provide | | | | consider a couple of things. Cost must |
| online and offline services for property | | | | be the key factor. The fee schedule may |
| sales. | | | | vary depending upon the brokerage firm |
| Moreover, there are two levels of | | | | and the quality of shares handled by |
| discount brokers on the basis of | | | | them. Always read the fine print and |
| commissions. They are standard | | | | look for hidden costs including |
| discounters and deep discounters. The | | | | transaction fee, postage fee, and fees |
| commission charged by a standard | | | | for late payments. |
| discounter is 50% less than full-service | | | | In most cases, discount brokers do not |
| brokers. Deep discounters feature the | | | | have local branch offices. So it is |
| lowest commission structure, which is 60 | | | | crucial to check the background and |
| to 90% lower than full-service brokers. | | | | strategy of the discount broker before |
| Discount brokers offer a wide variety of | | | | hiring one. Make sure that the discount |
| services. They provide 'no-load' mutual | | | | broker is properly licensed and |
| funds, at a lower commission (around | | | | experienced. Stock forums and referrals |
| 0.5%). Most of them offer free mutual | | | | can help the trader find a reliable |
| fund purchases through some special | | | | discount broker. |
| arrangements. All discount brokers | | | | |