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