The most successful equity brokers may not always be suitable for you because they usually focus on the large accounts and have little time to spare for stock investors with small amounts to invest. Do you fit in this small category of investors, if so, you have been warned.
What type of broker service do you need?
If you don`t know much about the stock market or lack the time to research your stock investment options, you may need a full-service or advisory broker, who will provide advice and recommendations, based on in-house research.
Full-service equity brokers will analyze your investment needs and help you to determine your short-term and long-term financial goals, while keeping your risk tolerance in mind.
Be prepared to pay higher brokerage with a full-service stockbroker. If you have a small amount of money for stock investing, it may not be easy to find a full service broker who is willing to handle your stock investments.
A discount broker will not offer advice or recommendations and will only buy or sell shares as per your orders. With a discount broker you can expect to pay lower brokerage than you would have to pay with a full-service broker. Brokerage is usually negotiable, depending on the services you require and their location.
Different brokers specialize in different segments of stock trading and depending on your trading volume it may be preferable to deal with more than one share broker.
Some day traders set up more than one account so that they will have a backup plan, if their favorite broker has some problems. Day traders require fast execution speeds and some brokerages will waive the charges if your order takes longer than 60 seconds to execute. Traders who take short positions prefer a large stock broker company that will have shares to lend for short positions.
Some of the largest online stock broker firms still send customer orders to third parties, who pay them to execute the orders. The third party makes some money on the transaction and as a result, the customer is not able to get the best possible deal.
Research your options before you sign up
Read the fine print before you start dealing with a financial broker. Some of them don`t offer competitive rates, while others add on hidden charges. Most of them will pay you interest on the money you have in your in your account, while you are not holding any position. Some of them will invest your money in the money market, to get you a better return and a few will even allow you to write checks on your account.
The possibility of human error always exists, so look for a brokerage that employs courteous and professional customer care staff.
Talk to many brokers and ask them about the type of services they provide and their charges. Ask them if they have research facilities and provide investment information and stock market news through their website, stockbroker newsletter or seminars. With a full-service investment broker, ask about how your often your investment plan will be reviewed.
The most successful brokers usually specialize in meeting the requirements of large investors, so it is preferable to find a stock broker who is just right for your needs and investment strategy.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Transferring data from Palm Access to Outlook 2007
By: katie9671 | 15-08-2008
I'm trying to transfer Palm Access address and date books to Outlook 2007. I've tried exporting to text files with no success. Can anyone help?
My husband is a stockbroker in Florida. We have ...
By: tisme | 09-08-2008
My husband is a stockbroker in Florida. We have been hit very hard by the accelerated real estate crash in our area (2nd in the nation for foreclosures) and as a result of tenant vacancies and inability to liquidate investement properties ahead of the bow wave of declining values he now has nearly 7 properties in foreclosure. I am extremely concerned about the mortgage companies pursuing him for deficiency judgements. There is just no way he could pay all of them if they are granted to the creditor and goes to collection. He says he can't file for bankruptcy because he will lose his stock broker license. I think a bankruptcy is less risky then having all the foreclosures on his credit and the possiblity of judgements/collections against him. What can he do to protect his license?
How to find lost AOL mail saved on my PC.
By: deejay | 07-08-2008
How to find lost AOL mail saved on my PC.
Borrowing from a 403B Pension Fund
By: Mike Elliott | 07-08-2008
Can you borrow funds from a 403B to cover closing cost when you purchase a house
How to report ethics violation of stock broker
By: The Bonster | 05-08-2008
What to do when a stock broker at a major firm makes unsolicited trades in my account. These trades totaled many many thousands of dollars in commission for the broker. Is there any recourse to be made whole again and how to report ethics violation of this stock broker. Thank you.
When and what is world cane day
By: sumeet | 05-08-2008
when and what is world cane day
Q&A Powered by:
Latest Finance Articles
Shopping For Auto Insurance
By: Brenda Williams | 07/10/2008
When you get your license for the first time before you begin driving you need to get car insurance as it's mandatory to have car insurance while driving. Car insurance can be rather expensive, especially for new drivers which is why you'll need to ensure that you're getting the best...
Taking 100% Responsibility - the Prerequisite for Creating Money & Marriage Success
By: Leslie Cunningham | 07/10/2008
It's a simple concept, to refrain from blaming and complaining, and yet it's a challenge to change a habit, especially one that everyone else has. Like sticking to your diet, when everyone else around you is enjoying chocolate cake. Keep reading and you'll find out how this relates to your marriage and finances. Then I'll share some action steps to help you become 100% responsible for your life.
Retirement Income Investing and Your Portfolio
By: Steve Selengut | 07/10/2008
Brokerage firm monthly statements are designed to promote either fear or greed, depending on the current market environment. Nowhere on your statement can you find numbers that report your net investment, your total working capital, or your true asset allocation. Current and projected income numbers are given little attention
Buy to Let Investors Get a Boost
By: Parmdeep Vadesha | 06/10/2008
Buy to let UK investors are in a prime position to take advantage of a new government plan to spur property market activity. The scheme aims to permit property buyers to buy properties worth up to
How to Buy a Repossessed Property for Below Market Value
By: Parmdeep Vadesha | 06/10/2008
Buying a repossessed property is what matters for investors who are keen on reaping high profits. But even with the advantages it poses, there are certain aspects you need to be aware of before you start on the task of acquiring your next property cheaply.
Brits Should Ensure They Have the Cheapest Energy Supplier
By: Abbi Rouse | 06/10/2008
With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.
How to Analyze Commercial Properties
By: Lorenzo Hills | 06/10/2008
Financing commercial properties or income-producing real estate is not an exact science. It requires subjective analysis, experience, and an ability to be innovative and creative.
Is There Really Such a Thing as Free Student Credit Cards?
By: Sean Masterson | 06/10/2008
Looking for free student credit cards? Some insist they don't exist. Don't believe them. You can find them, you just need to know how to play the game...
More from Ayna Miah
How To Choose An Online Stock Broker
By: Ayna Miah | 03/08/2008 | Finance
With the advent of internet, people dealing in stocks have opted for online stock brokers as a cheaper and quicker option for trading in stocks.
Requirements For Stock Broker License
By: Ayna Miah | 10/06/2008 | Careers
A stock broker is an authorized person who deals in stocks in the stock market on behalf of individuals or corporations. This person is authorized to trade in the stock market so that he can buy and sell stocks on behalf of his clients.
Stock Broking A Passion For A Career
By: Ayna Miah | 28/05/2008 | Careers
For many people stock broking is more of a passion rather than a serious career. More often this passion towards stocks and stock market gradually develops into a career. Thus lots of entrepreneurs look for answers for their question, how can I become a stock broker?
How To Find Stock Broker At Your Local Bank
By: Ayna Miah | 15/04/2008 | Finance
You can get help from some local banks who can provide stocks or shares investment advice free of charge.
Stock Broker Listings - Works Well For Investors
By: Ayna Miah | 27/02/2008 | Finance
Stock market trading has become vast and well spread. People involving in stock trading business take interest in stock broker listing affairs across the world.
How To Become A Stock Broker
By: Ayna Miah | 13/08/2007 | Careers
If you are ambitious and are interested in the stock market, enjoy a fast paced lifestyle and have the capacity to take risks, this might be the right career for you. Stock brokers have to work long hours to establish themselves in a competitive industry and to understand the markets.
Announcing How To Monetarise Stock Broker Career
By: Ayna Miah | 24/07/2007 | Careers
If you are a naturalist who have the flair and personality for handling stocks, then you have a call from the stock exchange and stock broking firms. You can choose your stock broker career with investment banks or with any of the stock broking firms.
Searching For A Successful Stock Broker
By: Ayna Miah | 10/07/2007 | Finance
Are you searching for a successful stock broker? A confident stock broker will be able to help you to meet your investment goals and it is worth taking your time to educate yourself and research your options. Many stock brokers are little more than sales men who are only interested in earning a commission.
Finance 
