When you are trying to find an online stock broker you may find yourself overwhelmed by the amount of choices that you have. There are dozens, if not hundreds of huge banks and investment firms that are all vying for your business. All of their firms offer you the “best trades”, the “lowest prices” and the “most comprehensive tools”. So how can you decide who really is the best bet when undertaking your search for online stock brokers?
The good news is that since there are so many companies, all competing for your business you can be assured that among the top three to five brokers you will find service that suits your needs.
If you need some extra help deciding on which stock broker to go with, there are numerous websites that list and rate the top online stock brokers to help you choose the one that is right for you.
So what are some of the main options when looking for a stock broker?
Full Service Stock Brokers
A full service broker is a traditional type of stock broker, who can assist clients with a vast array of services. Usually working as a part of a large firm, most full service brokers can help you buy and sell company stocks, treasury bonds, commodities & derivatives and even arrange managed funds. they usually operate with a client list whom they get to know in order to service each individual client to the best of their ability.
Online Stock Brokers
To put it simply Online Stock Brokers do the same job as traditional stock brokers but conduct the vast majority of their day to day trading operation via the internet. This also includes most of their client contact and servicing. Most of the time the online stock brokers are centralized through the companies web based interface, but with some companies there may be additional options such as direct contact via email or instant messaging.
Most of the transactions conducted by online stock brokers are done via automated software systems and trading engines which allow you to perform trades with little more than the click of a mouse or a tap of a screen. Orders are for the most part fulfilled in an instant via the system but actual brokers are available to verify and certify each order as well as to assist when you need additional help or expert advice.
Discount Stock Brokers
Discount Stock Brokers are a relatively new phenomena. Made available through the power and speed of the internet, they usually rely heavily on their websites to transact with clients in order to keep their prices as low as possible. Most Discount Stock Brokers operate out of a pool of brokers, which means that when a client calls the brokers office, a different broker will attend to their needs each time. There is usually very little in the way of personal contact or advice and clients are expected to be able to take care of most of their own transactions through the various online interfaces offered by the firm.