Online Trading Brokerage
There are quite a few things that determine which type of stock brokerage is the best for your needs. One of the biggest determinants is the frequency at which you trade stocks with your account. If you trade frequently, say, with a day trading strategy, your trading costs per trade are going to make a big difference to your trading results. For those trading very often, many analysts recommend going with the discount brokerages, which make the trading available at the least costs to the customers. Even though you may not trade very often, you may opt to use discount brokerages, for the same reason a lot of people use Wal-Mart: why pay more when you can pay less? However, the so-called full service brokerages, which are at the other end of the spectrum of brokerages, have a place in the universe of brokerages. These full service brokerages are choice of many novice traders, because they have the full range of services available, from phone customer service to access to their analysts for stock recommendations. The full service brokerages often have broker persons that are assigned to the clients, and the clients work in co-operation with the brokers to achieve better results. These services will end up costing more, often much more, for the clients than what they'd pay for just making the trades through discount brokerages. For a lot of people, the full service brokerages are simply a stepping stone in their education towards self sufficient trading. They learn the basics of trading with the full support environment of the full services brokerages, and then move on to trade on their own with discount brokerages and third party resources later on. Also, if the trading is very infrequent, the full service brokerages provide a stable and reliable trading medium, down to how they do their documentation for bookkeeping purposes to their clients. |