| Depending on the type of investing that you | | | | it come to brokers is whether you want a full |
| plan to do, you may need to hire a broker to | | | | service broker or a discount broker. |
| handle your investments for you. Brokers work | | | | |
| for brokerage houses and have the ability to | | | | If you are new to investing, you may need to |
| buy and sell stock on the stock exchange. You | | | | go with a full service broker to ensure that |
| may wonder if you really need a broker. The | | | | you are making wise investments. They can |
| answer is yes. If you intend to buy or sell | | | | offer you the skill that you lack at this |
| stocks on the stock exchange, you must have a | | | | point. However, if you are already |
| broker. | | | | knowledgeable about the stock market, all you |
| | | | really need is a discount broker to make your |
| Stockbrokers are required to pass two | | | | trades for you. |
| different tests in order to obtain their | | | | |
| license. These tests are very difficult, and | | | | Before making a transaction in the futures or |
| most brokers have a background in business or | | | | options on futures markets, you must open an |
| finance, with a Bachelors or Masters Degree. | | | | account through a licensed Series 3 commodity |
| | | | brokerage representative. Often you will be |
| It is very important to understand the | | | | able to find a good futures broker through |
| difference between a broker and a stock | | | | the reference of a friend or co worker |
| market analyst. An analyst literally analyzes | | | | currently trading the futures markets, or a |
| the stock market, and predicts what it will | | | | broker might call you directly and introduce |
| or will not do, or how specific stocks will | | | | him or herself. But, if you do not have |
| perform. A stock broker is only there to | | | | someone who can help, there are several |
| follow your instructions to either buy or | | | | sources available, including CME Find a |
| sell stock not to analyze stocks. | | | | Broker. |
| | | | |
| Brokers earn their money from commissions on | | | | There are several types of brokerage firms |
| sales in most cases. When you instruct your | | | | from which you can choose: Full Service |
| broker to buy or sell a stock, they earn a | | | | Brokerage If you are following several |
| set percentage of the transaction. Many | | | | markets, you may want the experience and |
| brokers charge a flat per transaction fee. | | | | assistance of a full service brokerage firm. |
| | | | Your trading strategies will be a joint |
| There are two types of brokers: Full service | | | | effort between you and your broker. If you |
| brokers and discount brokers. Full service | | | | are new to futures trading, you might feel |
| brokers can usually offer more types of | | | | more comfortable with the extra attention |
| investments, may provide you with investment | | | | that a full service brokerage extends. A full |
| advice, and is usually paid in commissions. | | | | service firm offers you advice on investments |
| | | | currently in the news, provides you with data |
| Discount brokers typically do not offer any | | | | so that you will be knowledgeable in several |
| advice and do no research they just do as you | | | | areas, and contacts you regularly with |
| ask them to do, without all of the bells and | | | | trading advice, etc. Transaction fees are |
| whistles. | | | | generally higher because of the additional |
| | | | services they provide. |
| So, the biggest decision you must make when | | | | |