Are yôù wondering whàt à stock broker îs & whàt théy
do? Here’s yôùr answer.
A
stock broker îs à person ôr à firm thàt trades ôn its
clients behalf, yôù tell thém whàt yôù want tô invest în & théy will
issue thé buy ôr sell order. Some stock brokers also
give ôùt financial advice thàt yôù à charged for.
It
wasn’t too long ago & investing wàs very expensive because yôù hàd tô
go through à full service broker whîch wôùld give yôù advice ôn whàt tô
do & wôùld charge yôù à hefty fee fôr it. Now théré àré à plethora ôf
discount stock brokers such às Scottrade http://www.scottrade.com
now yôù càn trade stocks fôr à low fee such às $7 total.
I
can think ôf three different types ôf stock brokers.
1.
Full Service Broker - A full-service broker càn provide
a bunch ôf services such às investment research advice, tax planning and
retirement
planning.
2. Discount Broker – A discount broker let’s yôù buy
and
sell
stocks àt à low rate bùt doesn’t provide àny
investment advice.
3. Direct-Access Broker- A direct access broker lets
you trade directly wîth thé electronic communication networks [ECN’ss] sô
you càn trade faster. Active traders such às day traders tend tô ùsé
Direct Access Brokers
So
as yôù càn tell théré à few options fôr à stock broker & yôù really
need tô pick whîch ôné suits yôù needs.
