Do you know all of the types of stock brokers there are? In this post we’ll highlight two common varieties – full-service and discount brokerage firms – currently operating on the market.
Investing in stocks can be a complex business. To be successful at it, one needs to have an intimate knowledge of the market and keep tabs on changing trends as well as fluctuations in price of the held stocks. With that being said, stock brokers offer convenient trading platforms that enable traders to trade more easily. Let’s see how that works!
Who Is a Stock Broker? A stockbroker is an individual or firm authorized to facilitate buying and selling securities such as stocks, mutual funds, bonds, IPOs, ETFs or currency for both retail and institutional investors.
Brokers are registered with specific stock exchanges, allowing them to trade exclusively within them. Brokers make trading user-friendly by providing tools and platforms which are easily accessible by novice traders. From opening a brokerage account and providing advice about what and why to buy securities to actually managing and overseeing them post purchase – Stockbrokers take care of everything for you!
Things do come at a cost! Brokers charge fees or commission for their services provided; this fee or commission is known as brokerage and may vary depending on the broker and company they belong to. That begs the question of: how many types of stock brokers exist today, what differences exist among them and who’s better.
Have no fear – we have you covered. By the end of this article, you should have all the knowledge needed to select an ideal broker for your requirements.
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