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Discount Stock Brokers
Discount stock brokers offer stock broking services for lower fees than full-service stock brokers. Discount brokers may also be called non-advisory brokers, no-frills brokers or low-fee stock brokers. Many online stock brokers would be considered discount brokers.
The name is fairly self-explanatory, but don't misjudge discount brokers just because they are cheap. Many discount brokers will provide general advice, market reports and even stock tips. The only difference is they leave a lot more of the final decision making up to you.
The amount you save on a discount stock broker can be crucial for smaller investors, especially if you're planning to trade a short to mid-term strategy. Brokerage rates of $100 will soon kill gains of a $5000-$10,000 investment, but with discount broker rates falling as low as $19.95, the potential advantages of discount brokers are clear.
If you're thinking of using a discount broker, you should have done the appropriate research or even have prior experience stock trading. You must have a solid trading strategy and a clear idea of your financial goals, and you should also be able to assess and weigh risk according to any investment choices you make.
Mistakes could cost you your hard-earned investment money, so you must be sure when choosing to employ discount stock brokers.
