| esnt matter what you plan on investing in, you will | | | | 3. Assistance Broker |
| likely have to go through a broker. When entering | | | | The next step in service is a discount or online |
| the world of the stock market for the first time, | | | | brokerage with an assistance broker. The assistance |
| choosing a broker is your initial step and potentially | | | | broker will offer a marginal amount of help. In online |
| the most important decision you will make. For | | | | brokerage firms, the assistant broker takes the form |
| example, what broker you choose can determine | | | | of more research available and newsletters with |
| how much of your investment you can lose before | | | | investing tips. There is still a degree of research that |
| they shut your account down. | | | | needs to be done by the individual investor, but |
| 1. Full Service Brokers | | | | these brokerages at least point their clients in the |
| A full service broker is a full company that has its | | | | right direction. |
| own team of market analists working for them. Their | | | | 4. About Full Service Brokers |
| superior knowledge of the market can greatly assist | | | | The traditional full service broker provides |
| you to make the right trade. In 1975, all of that | | | | recommendations for specific stocks that would be |
| changed and the discount brokers became the | | | | good for your portfolio. The broker analyzes your |
| reigning champs of the investing world. In the last ten | | | | financial situation to determine your needs. They put |
| years, the internet has allowed individual investors to | | | | together an investing plan that is reviewed periodically |
| research and investigate potential stocks themselves, | | | | and adjusted as needed. Full service brokers are an |
| and even buy and sell stock. There have been | | | | excellent choice for those who don (TM)t have the |
| advantages to the advent of the discount broker | | | | time or the interest in staying on top of the latest |
| and online brokerage firm, but for some investors it | | | | financial news. The full service broker does all the |
| has led to more mistakes in less time. The key is | | | | research for you and presents you with the best |
| doing the research and investing wisely. | | | | investments for your situation. Their clients are |
| 2. Discount And Online Brokers | | | | handled with attention to personal details and goals. |
| On one end of the spectrum are the discount and | | | | This attention does come with hefty commission |
| online brokers. These brokerage firms act as order | | | | fees, but considering the amount of work and |
| takers for their investors. The investor places an | | | | dedication that full service brokers provide these |
| order on the phone or online. The only helped | | | | fees are understandable. Traditional full-service |
| offered is with the technical aspects of the website | | | | brokers make money based on the amount of |
| or the ordering process. There is no guidance for | | | | transactions they facilitate. |
| what stocks to buy, when to buy or when to sell. | | | | 5. Money Managers |
| Many online brokerage firms offer their members | | | | Paying for someone else to manage your money is a |
| access to stock market research, but this is provided | | | | smart move. Money managers (also called financial |
| by a third party. The account management tools help | | | | advisors) will work with clients to improve their entire |
| you understand how much you have invested and | | | | financial picture, that may or may not include |
| where it is going. These tools are normally online or | | | | investing in stocks. Money managers hold stocks and |
| downloadable. The discount and online brokers are | | | | bonds for clients. Each one has his or her own unique |
| perfect for people either already familiar with the | | | | style and so it is important that you choose wisely to |
| stock market, or those who do not have much | | | | make sure your money manager has the same |
| money to invest. They do require that the investor | | | | financial philosophy that you do. A professional |
| spend time researching and planning investments. If | | | | money manager does not receive commissions on |
| you are interested in research or want to avoid | | | | transactions. These kinds of brokers typically work |
| hefty brokerage fees than discount and online | | | | on commission so they are highly motivated to make |
| brokers may be for you. | | | | sure that you make big profits with your investment. |