Brokers and Online Trading
Brokers and Online Trading - Introduction

Brokers - can't live with 'em, can't live without 'em.

Brokers share the undesirable reputation of lawyers, bankers and accountants. They earn a living by selectively sharing knowledge that the general public can't easily access. But, like it or not, they are the individual investor's direct link to Wall Street. Although technology and the Internet have made it easier for individual investors to take control of their portfolio, the basic rule still applies: you need some kind of broker if you want to trade stocks and bonds.

In any profession, you will find people who take advantage of those who aren't in the know. Whenever you buy something, there is the possibility of being cheated. Furthermore, with a broker you purchase advice, which is hard to price. But not all brokers fit the stereotype of the man in the Italian designer suit, earning a six figure salary while golfing instead of going to the office. There are many brokers who do a phenomenal job guarding their clients' interests. There are also many discount brokerages that provide remarkable services for a reasonable price.

It's up to you to pick the broker that meets your needs. This section will go over some important factors to consider when making the choice.