If you are planning to invest in stock market, you need the assistance of stockbrokers who can execute your orders and suggest you the effective ways to make more profit. Actually, stockbrokers are the licensed and registered financial firms that assist you in buying and selling transactions in different types of financial instruments, like stocks, bonds, derivatives,and IPOs. They do it for both the retail and institutional investors. Before start trading, you should know that all types of financial market trading are executed by the stock brokers and they charge a brokerage charge or commission for their service. There are two main types of stock brokers, like traditional brokers and discount brokers. But, there are different other types of brokers in the market. Today, you will get to know more about them.
Categories of Stock Brokers
Here, you will find four basic types of stockbrokers who can lead you to the right path of trading and help you to have more profit. The broader categories are-
- Full-Service Brokers
- Discount Brokers
- Discount/Online Brokers
- Money Manager
Read on to know about them in details.
- Full-service Brokers
They are also known as the traditional brokers. Are you planning to trade for a bulk amount? Then, full-service brokers are at your service. Once you contact their firm, you will be guided thoroughly. The broker will start with your financial assessment of your present situation and then figure out your needs. Based on their findings, they will suggest you the most suitable field of investment for you. You will be provided an investment plan which you can review and make suitable adjustments. They are there to do all kinds of researchers on behalf of you. Due to such vivid service, the commission they charge is quite high.
- Discount Brokers
If you are new in the game and don’t want to play with bigger cards, this broker is perfect for you. You should go for discount brokers if you have a minimum amount of money in your hand. Actually, the idea of discount brokers has made it possible that anyone can start trading with any amount in hand. Discount brokers have no interest in your profit, therefore, they won’t suggest you where to invest and where not. They won’t pressurize you to buy a share and sell it at a particular time. They have their websites for the traders from where you can do some homework on trading and sail on. The commission they charge is really minimum.
- Discount/Online Broker
Today, technological advancement has made things easy. You don’t really meet the online brokers or talk to them much. You will receive help while you stumble in the way.
- Money Manager
The main job of them is to handle significant portfolios. You can only choose the path if you have a bulk amount in your hand.
These are the types of brokers you can find in the market. Choose the best stock broker for you and start trading now.