| Discount brokers can be a great way for some | | | | While discount brokers will not advise you, they will |
| consumers to get into and participate in the stock | | | | charge you for their services. Discount brokers offer |
| market or the bond market. However, discount | | | | various fees, depending on many factors, but often it |
| brokers are not for everyone. There are severe | | | | is based on the number of shares that you want to |
| limitations that come with working with discount | | | | trade. One good aspect about this for consumers is |
| brokers and consumers should understand what | | | | that competition for your business is stiff in this |
| those limitations are before they sign on with one. | | | | industry and you can often find very good deals |
| This article explores some of the issues that you will | | | | among the leading brokerage firms. When you are |
| face when working through discount brokers. | | | | researching discount brokers, make sure you ask |
| First, it should be understood that there are discount | | | | about additional fees that may be charged for things |
| brokers and there are full service brokers. There is a | | | | such as assets transfers, IRA fees, and banking |
| difference between the two. | | | | transaction fees. |
| Discount brokers are a fine choice if you want to | | | | Before you sign up with a discount broker, ask some |
| participate in the stock market but do not need any | | | | questions. |
| advice before making your stock picks. Discount | | | | You will want to know if there is a minimum opening |
| brokers do not offer clients any investment advice | | | | deposit required. You will also want to know if there |
| and do not walk through the process of investing. | | | | are any accounting fees involved with your account |
| For this reason, you have to know what you are | | | | or if that is a free service. You will want to know if |
| doing or working with this type of broker can be a | | | | there are any penalties for infrequent trading. In |
| big mistake. | | | | addition, you may want to know if they offer any |
| If you are comfortable doing your own research and | | | | research materials or tools for you to use. Many |
| making your own buying decisions, discount brokers | | | | companies now offer online transaction pages that |
| will act in your behalf and buy or sell stocks and | | | | are secure, you may wish to know if the broker you |
| conduct option trades for you. In other words, you | | | | are interested in working with offers this too, and if |
| tell the discount broker what you want and they will | | | | there is a charge for using the tools. Lastly, you |
| execute the order for you. | | | | always want to check the discount broker out |
| For those who are not as comfortable making these | | | | before sending money. This can help stave off |
| decisions, or for those who simply do not have the | | | | disappointment and help steer you away from less |
| time to research various companies on their own, | | | | than reputable brokers. |
| full-service brokers will advice you on what to buy, | | | | You can find a lot of information on the various big |
| when to sell, and how to divide your investment | | | | name discount brokers online. This is a good place to |
| money. | | | | start when thinking of opening an account. |