Choosing a Broker


Depending on the type of investing that you plan to do, you may need to hire a broker to handle your investments for you. Brokers work for brokerage houses and have the ability to buy and sell stock on the stock exchange. You may wonder if you really need a broker. The answer is yes. If you intend to buy or sell stocks on the stock exchange, you must have a broker.

Stockbrokers are required to pass two different tests in order to obtain their license. These tests are very difficult, and most brokers have a background in business or finance, with a Bachelors or Masters Degree.

It is very important to understand the difference between a broker and a stock market analyst. An analyst literally analyzes the stock market, and predicts what it will or will not do, or how specific stocks will perform. A stock broker is only there to follow your instructions to either buy or sell stock... not to analyze stocks.

Brokers earn their money from commissions on sales in most cases. When you instruct your broker to buy or sell a stock, they earn a set percentage of the transaction. Many brokers charge a flat "per transaction" fee.

There are two types of brokers: Full service brokers and discount brokers.

  1. Full service brokers can usually offer more types of investments, may provide you with investment advice, and is usually paid in commissions.
  2. Discount brokers typically do not offer any advice and do no research - they just do as you ask them to do, without all of the bells and whistles.

So, the biggest decision you must make when it come to brokers is whether you want a full service broker or a discount broker.

If you are new to investing, you may need to go with a full service broker to ensure that you are making wise investments. They can offer you the skill that you lack at this point. However, if you are already knowledgeable about the stock market, all you really need is a discount broker to make your trades for you.




Search
Recent Posts
Online Dating Activities
Online Dating Activities

All types of everyday activities are growing in popularity online these days

A Woman Guide To Writing A Great Profile
A Woman Guide To Writing A Great Profile

OK... the time has come. You have joined an online dating service or

Latest Posts
Good Design Practices
Good Design Practices

Your website is where your business resides - it's like the headquarter

When Is The Right Time To Redesign
When Is The Right Time To Redesign

If you run a website, chances are you often wonder whether it

Recent Posts


Popular Online Dating Activities
Popular Online Dating Activities

All types of everyday activities are growing in popularity online these days


A Woman's Guide To Writing A Great Profile
A Woman's Guide To Writing A Great Profile

OK... the time has come. You have joined an online dating service or

Latest Posts


Good Design Practices
Good Design Practices

Your website is where your business resides - it's like the headquarter


When Is The Right Time To Redesign?
When Is The Right Time To Redesign?

If you run a website, chances are you often wonder whether it

Your Company

LOGO

goes here...


Do you want to put your company logo on this space?

Contact us now



        Don't waste your time to search around, we have what you want. The greatest software
best solutions to fit your business needs. Your business is our business your satisfaction is our goal.
 
Copyright © 2003 - 2020 Vinasoft Plus All rights reserved. Testimonials | Terms & License