Different Types of Brokers
"Financial education needs to be part of our national curriculum and scoring system so that it is not just the rich kids, understand the money .. It's all about us." -David Bach
Investors can use several different types of brokers. Broker types ranging from high-end and expensive financial advisors to online and automatic brokers are quite cheap. Financial advisors are useful for those who lack the knowledge needed to invest in the stock market. Investing in knowing the investment base and developing a financial plan is definitely a bad idea.
Brokers can work with you to educate you and give you the choice of investment. A full-server broker working in a large company can get an incredible wealth of knowledge and research. That's why they're so expensive. Online brokers are the cheapest because they charge almost no commission, and you have to do the research yourself.
High-priced guys usually have researchers working for them. They have an accurate picture of how the stock market practices and be able to predict what the stock market will do in their ability to do in the future. This type of advisor will suggest what he thinks best based on your investment plan. Note that often high-priced brokers will promote their own shares of the company's shares. Make sure your investment decision is right for you, not just fill your advisor's pocket.
Discount brokers who want you to do your own research. He may or may not provide a list of stocks he considers to be a good investment. When you figure out what you want to invest in, how do you leave the discounted investor to know that he will do the paperwork.
Online brokers are quite new. You can access an online broker through the World Wide Web. Broker site provides many research databases, charts, charts and market tips. However, you are basically your own. You buy and sell stocks when you want. There is very little interaction between you and the broker.
Online brokerage firms work well for some people because they can access 24 hours a day, seven days a week.