- Posted December 22, 2013 by
Wall Street, New York
How to Choose a stockbroker for your investment
1) Full-service brokers
2) Discount brokers
3) Online brokers
- A full service stock broker is there to provide you with advice, updates and everything you need to manage your investment. In some cases, you can tell full service stock brokers your investment goals and appetite for risk, and allow them free reign to manage your money.They taking commissions from each trades, sometimes it's negotiable, sometimes it's depending on stock price and % from total price. Everything is depending on types.
- Discount stock brokers offer stock broking services for lower fees than full-service stock brokers. Discount brokers may also be called non-advisory brokers, no-frills brokers or low-fee stock brokers. Many online stock brokers would be considered discount brokers.The name is fairly self-explanatory, but don't misjudge discount brokers just because they are cheap. Many discount brokers will provide general advice, market reports and even stock tips. The only difference is they leave a lot more of the final decision making up to you. Commission is generally ranging between 4.95 $ - 11 $ for each trades on stocks and includes buy/sell orders, but here is much risky on stockbroker, while it's very hard to find right and trustworthy stockbroker.
- Online stock brokers are an appealing choice for many investors. Using the power of the internet, online stock brokers provide cost effective brokerage services, up-to-date information and advanced stock trading platforms to suit a variety of investment strategies. Online stock brokers may also be called internet brokers, online brokers or online discount brokers. Some of them are from Forex distributors and they playing on high rates.
Before you choose your stockbroker you must answer the following questions:
1) What do you want to trade?
2) How often will you buy or sell?
3) Will you require advice? (Sometimes this is communicated with extra cost for discounted or online brokers, advice service is a part of service for full-service brokers).
According that today we recognize two major financial market worldwide: US and UK, differences between them is much than we can to imagine it. Sometimes find a good stockbroker is more problematic and important than to raise your capital. First my recommendation is to find full information about stockbrokers, never trust your friends or business partners who thinks that he has good stockbroker, remember that sometimes what is good for "Mike" it's not good for "Jack". Know you know everything about all type of stockbrokers. The next question you need to ask yourself is: Do I want a full service or discount broker? A full service stockbroker will give you recommendations for securities that you should buy. A discount broker only places the order that you give. You need to determine if you want the professional advice from a stockbroker or do your own research and just place orders. People use full service brokers for many reasons which include helping you diversify your portfolio, helping you get in on that hot stock tip, getting the rare stocks from the international markets and to give you the most up to date information on your investments.
Check with your stockbroker about the following:
1) Experience, certifications, commissions, fees, or flat fees.
2) Licenses - Stockbrokers in the United States are required to obtain several licenses - such as the Series 7 and 63 licenses – before they are allowed to transact business with clients. Each license is obtained by passing the corresponding exam: Series 7, 63, 65, 66, 3, 31.
3) How are they approaching investing?
4) What are their criteria for making decisions?
5) And finally, drop by their office and check it out!
After you read full of my recommendation that is based on my experience i want to introduce you list of top Full-service and discounted brokers from my view:
Full Service Brokers:
1) Edward Jones
3) Raymond James
4) Merrill Lynch
5) Wells Fargo Advisors
6) Morgan Stanley Smith Barney
7) E.F. Hutton & Co
8) Bache & Co
9) Dean witter & Co
10) Goldman Sachs
11) Bear Stearns
12) Gardner Rich & Co
1) TD Ameritrade
2) First Trade
4) Fidelity Investments
5) Trade King
6) Charles Schwab Corporation.
This information is based on my 5 year experience in stock trading. I had good and terrible times, i had profits and big losses, but totally this is big experience for me. Remember if you don't know what are you doing never start investing. Investment isn't a casino, this is place where you can meet to your future profits, but before you must analyze all and invest after.
Chief Executive Officer
I.B. Capital Management, LLC