How to Find A Discount Stock Brokerage

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By seradis
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Discount Stock Brokerage

A discount stock brokerage charges less than stock brokers and usually function online. A discount stock broker will not recommend stocks to buy. A full service broker will. Here is how to find a discount stock brokerage.

Difficulty: Moderate

Instructions

Step 1

Do your own research on the stock. If you plan to do a lot of trading and are willing to put the time into researching the stock then a discount stock brokerage is the way to go, as it is cheaper. If you do not plan to research your stock options, go with a full time stock broker.
Step 2

Look on the internet for discount stock brokers. There are plenty of good discount stock brokers online such as Charles Schwab, TD Ameritrade, E*Trade and Scottrade.
Step 3

Pick a discount stock brokerage that suits your needs. Make sure they offer the online tools necessary for you to do the research and make a decision.
Step 4

Don't use just one discount stock broker. Some brokers focus on different segments of trading. Some may not offer option trading for instance. Use multiple accounts in case one has trouble.
Step 5

Compare fees. Some discount stock brokers have hidden fees. Read the fine print. Some brokers will let you write checks on your account.
Step 6

Take the time to find out where your money is going. Check your trade confirmation. Make sure it is correct. Review your monthly statements. If something is wrong, make a complaint immediately.
Step 7

Look at reviews. See if there are any complaints with the broker. Visit the North American Securities Administrators Association's Web site for the address and phone number for the Securities Regulator in your state.
Step 8

Check for execution speeds. Some discount stock brokers do not charge you if your order takes longer than a certain amount of time.
Step 9

Make sure the broker is easily able to reach. Make sure they have helpful customer service in case you have problems. Make sure you explain things until you understand. The stock market can be confusing.