Types of Brokers

There are numerous types of brokers categorized by the product or service that they offer their clients. Brokers provide investment guidance in exchange for a commission fee.

Types

The three main types of brokers are full service brokers, discount brokers and online brokers.

Benefits

Although a full service broker will be the most expensive type, they will provide the most detailed stock advice by utilizing an in house research team.

Considerations

A discount broker will handle your investments, but require that you do some of the legwork. You will be given a list of recommended stocks to research and select from.

Features

Online brokers are typically the least expensive type. The firm provides you with virtual charts, market news and other forms of research in order for you to make your investment decisions.

Warning

Before you use a discount or online broker, you should know some basics about the stock market and investing.

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