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