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The world of stockbrokers is divided into two basic
parts: Full service brokers and discount brokers.
Full Service Brokers
Full service brokers today have to be much more than order takers.
Companies in this category try to offer clients a complete range
of financial advisory services that extend beyond picking stocks
to retirement planning and meeting other financial goals. You pay
a price for this service, but if your broker is good they can help
you chart a course for your financial future.
Discount Brokers
Today’s discount broker is becoming more than an order taker. There
is a big slice of the market that wants something more than an order
taker, but less than what you get from a full service broker. They
often have excellent research resources available on their web sites
and strong online capabilities. You’ll pay more than the deep discount
brokers, but less than full service brokers.
Deep Discount Brokers
These brokers resemble the order taker image of old, but even they
have stronger online platforms and better customer service than
in the past. If you're after a low price then this is the way to
go. You may want to look at brokers in both discount categories
to see what level of support works best for you.
Conclusion
Picking a broker shouldn’t be about price alone. Be honest with
yourself about how much help you can use and go with the broker
who can fill in any gaps in your knowledge and experience. Together,
you’ll make a better investing team. If Trading using Technical
Analysis is your primary focus then Deep Discount Brokers are often
exactly what you need.
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