Benefits of a Discount Stock Broker
A stock broker is a person who works for a brokerage firm.
They are licensed and purchase shares of stock for clients through the brokerage firm.
When you decide you want to start buying stock, you need to set up an account with a brokerage firm in order to make trades.
You have two main options when it comes to brokerage firms.
Of course, within those options there are many different firms to choose from with a variety of services, but the two main types of firms are full service and discount.
A full service broker has a lot to offer such as help and advice, but they also charge a lot of money.
A discount broker doesn't give you any extra help beyond the trades online and free online research tools, but they are very inexpensive.
Why should you choose discount brokers over full service? Save Money The main reason is to save money.
A trade with a full service firm could cost you $150 or more.
A trade with a discount broker costs as little as $4 and not usually more than $10, depending on your broker and the type of trade you make.
For every trade, you could be saving well over $100.
Make Money What do you do with the money you save? Invest it, of course.
You save money on trades so you can put it toward more shares of stock.
The more shares you own, the more money you'll earn when when the value increases and you decide to sell.
Save Time With a full service broker, you'll have to set up an appointment, meet with an investment adviser, and discuss your investments.
Whenever you want to work with your discount broker, go online, use their tools, and place a trade when you want.
You don't need to set up an appointment and you can do it any time of day.
You can also save time by investing in mutual funds.
With a mutual fund, your investments are chosen for you and you get an automatically diversified portfolio.
There isn't any extensive research required to make good investments.
Avoid Bad Advice A professional investment adviser knows what they are doing and can make you more money, right? Maybe, but not necessarily.
Even the most experienced advisers can't guarantee you a rate of return, let alone a rate better than what you can make on your own.
Even if you choose to make your own investments instead of using a mutual fund, you can still do very well for yourself.
Plus, you won't get pushy advice to buy investments you don't feel comfortable with just so your adviser can make more commissions.
They are licensed and purchase shares of stock for clients through the brokerage firm.
When you decide you want to start buying stock, you need to set up an account with a brokerage firm in order to make trades.
You have two main options when it comes to brokerage firms.
Of course, within those options there are many different firms to choose from with a variety of services, but the two main types of firms are full service and discount.
A full service broker has a lot to offer such as help and advice, but they also charge a lot of money.
A discount broker doesn't give you any extra help beyond the trades online and free online research tools, but they are very inexpensive.
Why should you choose discount brokers over full service? Save Money The main reason is to save money.
A trade with a full service firm could cost you $150 or more.
A trade with a discount broker costs as little as $4 and not usually more than $10, depending on your broker and the type of trade you make.
For every trade, you could be saving well over $100.
Make Money What do you do with the money you save? Invest it, of course.
You save money on trades so you can put it toward more shares of stock.
The more shares you own, the more money you'll earn when when the value increases and you decide to sell.
Save Time With a full service broker, you'll have to set up an appointment, meet with an investment adviser, and discuss your investments.
Whenever you want to work with your discount broker, go online, use their tools, and place a trade when you want.
You don't need to set up an appointment and you can do it any time of day.
You can also save time by investing in mutual funds.
With a mutual fund, your investments are chosen for you and you get an automatically diversified portfolio.
There isn't any extensive research required to make good investments.
Avoid Bad Advice A professional investment adviser knows what they are doing and can make you more money, right? Maybe, but not necessarily.
Even the most experienced advisers can't guarantee you a rate of return, let alone a rate better than what you can make on your own.
Even if you choose to make your own investments instead of using a mutual fund, you can still do very well for yourself.
Plus, you won't get pushy advice to buy investments you don't feel comfortable with just so your adviser can make more commissions.
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