Brokers and Online Trading
Conclusion and Resources

One of the most important investment decisions you will make has nothing to do with which stock, bond or mutual fund you buy. We're talking about selecting a broker. Hopefully the information in this tutorial will assist you in your search.

Let's recap:

• Brokers are the people who handle customer orders to buy and sell securities.
• Don't forget that a broker is a salesperson.
• Minimum balances required to open an account range from thousands of dollars to nothing at all.
• All brokerages charge commissions to execute orders. This fee varies widely depending on the type of brokerage.
• Look out for hidden fees for transactions like the transfer of assets or inactivity.
• Full-service brokers offer much more, but they're expensive.
• Discount brokers don't offer the extras, but they're affordable.
• Online brokerages have changed the industry by lowering costs and blurring the line between discount and full-service. More information can be found at our Broker Center here: Broker Center
• The type of brokerage you require depends on your investing style.
• It's possible to check the background of all brokers and firms.
• The type of account you need depends on the type of securities you want to hold.
• There are many ways to execute an equity order.