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Types of Online Trading Brokers

Brokers are individuals or representatives of brokerage firms who negotiate transactions between a seller and buyer. Therefore, they serve as facilitators in stock trading. They usually get a part of the sale when negotiations are finalized. It is called a commission.

Investment brokers come under different class based on the services they extend and advice they offer.

Full-Service Broker

A Full-Service Broker provides a mixture of services to the clients. This comprises of doing the required research to base their advice, commodity trading, retirement planning and providing tax-saving tips are amongst the useful offerings.

Key benefits:

  • •Research based recommendations
  • •Dedicated resources who can manage and execute all your transactions
  • •Provides single-point operations across your investment portfolio
  • • Reality planning and other services

Discount Broker: Based on your orders, a Discount Broker carries out buying and selling of stocks at reduced commission possibly at a flat fee brokerage value.

They may offer recommendations but verifications have to be done by you. They can consequently give orders to execute on your behalf. They do not provide personalised investment advice and additional services.

Key benefits

  • •Commission charged is low
  • •Managing trading activities only
  • •Commission charged is low
  • •Commission charged is low
  • •Anybody willing to invest can do so, even in small amounts

Online Broker: An Online Broker connects and works with you over the internet. They often work across different brokerage websites. Information like graphs, charts and trending news to complete your research are provided by them.

Key Benefits:

  • •Zero brokerage or small fee is charged
  • •Can be accessed from anywhere
  • •Useful information is provided
  • •Provides tips on investment

It is necessary to understand the types of brokers and their services offered to choose the best one for trading online.