| online stock trading the latest in Internet technology, | | | | executed electronically online does not mean you do |
| why do I need a broker to trade stocks online? A | | | | not require a broker. Even trades that are executed |
| stock market is made up of at least one stock | | | | electronically are only accepted if they are executed |
| exchange, and usually more than one. A person who | | | | by a registered stockbroker on that exchange. |
| is not a member of a stock exchange can not just | | | | Without a broker, you will not get any farther |
| trade stocks on the exchange or the market. A | | | | electronically trading stocks than you would if you |
| stockbroker is a member of the exchange that they | | | | waded onto the trading floor on Wall Street and tried |
| trade on, and this is how you have access to buying | | | | to trade. Not matter which method you use to trade |
| and selling stocks on the stock market. Only by using | | | | your stocks, whether you use an electronic |
| a stockbroker is it possible for normal individuals to | | | | execution or an execution on the trading floor of the |
| trade on the stock exchange and the stock market. | | | | exchange. A stockbroker is a member of the stock |
| All stockbrokers for a specific exchange must be | | | | exchange, and only members can trade on the |
| licensed and registered by that exchange, and this | | | | exchange. These brokers trade stocks for |
| insures that the stockbroker acts ethically and legally | | | | themselves, and they trade stocks for a commission |
| at all times. If a stockbroker is caught violating ethics | | | | for individuals who are not a member of the stock |
| or the law their trading priveleges on the exchange | | | | exchange. In this way normal people can invest in the |
| can be taken away. A stockbroker buys and sells | | | | stock market and buy and sell stocks. Online brokers |
| stock for their own benefit, and they also trade | | | | generally work from computer terminals that are |
| stock shares for individuals that are not stockbrokers. | | | | linked to other computers creating a network. A |
| This practice earns them a commission on trades | | | | broker is needed to trade stocks no matter which |
| that they execute for you. | | | | trading method you choose, and finding the right |
| Brokers that specialize in online stock trading use | | | | online broker is the most important decision you will |
| computer terminals to communicate and execute | | | | make concerning stock trading. |
| these trades for their clients. Just because trades are | | | | Copyright © 2007 Joel Teo. All rights reserved. |