Having a stock brokerage a/c is not a big deal. Getting the best brokerage service is something that really matters. There are critical factors to consider when choosing best stock broker for beginners.
According to Investor’s Business Daily, money making in stock market takes a lot of decisions, starting with choosing the right brokerage to meet your investing needs.
First time investors or traders are usually confused in finding the right broker. They are often looking for clues or tips to select the best online stock broker.
Stock brokers are registered & regulated professional members of stock exchanges. Their role is to execute buy & sell orders for stocks through stock exchanges.
They usually charge a fee or commission for their services. They provide their services to both retail & institutional clients. But, every stock broker is not the same.
They can be cheaper or costlier for investors or traders depending on various factors. Here are 16 critical things to look before finding first stock broker for small investors:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Discount Or Full Service Brokers
It is one of the first & most critical factors to consider when choosing best stock broker for beginners. Stock brokers can basically be of two types: Discount Brokers & Full-Service Brokers (Traditional Brokers).
Discount brokers are the brokers that are only responsible for trading on behalf of their clients (i.e. investors or traders). They don’t provide featured services.
However, full-service brokers are the brokers that provide you good number of featured services. Some of these featured services include advisory dealing, discretionary dealing, tax preparation & strategies, & many more.
Therefore, full-service brokers are somewhat costlier than discount brokers. Full-service brokers are often considered best option for first-time investors.
It is because they need to build confidence & knowledge of the markets. However, as you gain skills & experience to analyze & trade stocks, you can shift towards a discount broker.
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