| With the boom of the internet we have seen many | | | | checks when you want to place a trade. |
| discount stock brokers come onto the scene. They | | | | Each broker is different in terms of the execution of |
| offer cheap commissions and investment tools for | | | | the trade. Some offer faster trades than others, so |
| the novice stock trader. The question that needs to | | | | before opening an account, think about the type of |
| be addressed is that is one better off trading | | | | trading you will do. If you are a day trader, then a |
| through a discount broker or paying a higher | | | | fast execution is going to be very important to you, |
| commission to have their portfolio managed by an | | | | however if you are a long term investor, then a |
| expert. | | | | slower execution will most likely suit you. These |
| First let us discuss discount brokers. What is a | | | | types of things factor into the commission price, so |
| discount broker? They are stockbrokers that carry | | | | just because a broker has a low commission might |
| out buy and sell orders at a reduced commission | | | | mean you are sacrificing service for a lower price. |
| compared to a full-service broker, but provide no | | | | Many brokerages offer things called a brokerage |
| investment advice. The key there is that they | | | | bonus or brokerage promo for people that sign up |
| provide no advice regarding your investments. Most | | | | and invest a certain amount on money. The |
| discount brokerages such as Etrade, Tradeking and | | | | brokerage bonus can be anywhere from $25 to $200 |
| Ameritrade have numerous trading tools that can | | | | depending on the amount of money you move to |
| help you make educated decisions before you place | | | | the account. One example of this is the current $50 |
| a trade. Sometimes these tools can be a little difficult | | | | Tradeking Promo when you open a new account. |
| to use, so make sure you review the features prior | | | | Etrade also has many promos involving bonus airline |
| to opening an account. | | | | miles that come on time to time. Always check for a |
| Most discount brokers have a trade commission | | | | promo before you open an account as you can |
| fewer than ten dollars and no minimum trading | | | | usually find something. |
| balances. This alone makes it affordable for anyone | | | | With the large selection of discount brokers in the |
| to invest in the market. One must review all the fees | | | | industry, to find the best you need to determine |
| prior to signing up as some brokerages charge an | | | | what types of features you require compared to the |
| inactivity fee if you have not placed a trade in a | | | | commissions that they charge. If you don't need an |
| certain amount of time. Other items you should look | | | | expert's advice and want to try your own hand at |
| at are ACH capabilities. A brokerage that lets you | | | | trading then a discount broker is a great option for |
| transfer money into your account from a checking or | | | | you. |
| savings account is much easier then having to mail in | | | | |