Using Discount Stock Brokers For Investments

If you are going to invest in the stock market, you must execute your orders through a stock broker. However, not all stock brokers give you the same services or charge you the same price for the commission to execute your order. You may want to consider one of the discount stock brokers to handle your trades.

There are basically three types of discount stock brokers; full service discount, discount, and deep discount stock brokers. Online discount stock brokers are available also but here you will not have close contact with a warm body, which most investors like.

The first type of the discounters is the "Full-Service Discount" broker. They provide almost the same types of services as the traditional full service stock brokers. However, this type of the stock broker will charge you about 50% of the normal commission rate of the traditional firms. They will provide trading advice as well as their research reports. Market newsletters are also part of the package of services. You will probably deal with the personnel at a local branch office.