A Guide to Discount Brokers

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