Stock Brokers and Their Types

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Stock Brokers and Their Types A stockbroker is a middle person between the stock market and the stock trader. He facilitates the traders of the stock traders. A peculiar feature of the stock market is that a trader doesn’t find the sellers directly if he wants to buy a stock and also not able to find the buyers if he wants to sell his stock. This whole process of selling and buying stocks is operated through the offices of stockbrokers. There are two types of stockbrokers: ď ľ Full-Service Stock Brokers ď ľ Discount Stock Brokers

1.Full-Service Stock Brokers The full-service stock brokers provide a complete range of brokerage services. They give guidance to their clients about which stocks they should sell or buy. They also advise their traders about when they should buy or sell stocks and also for how long they should hold it. Full-service brokers also provide education to their customers about the whole process of stock trading.

You can get information about the stock market at websites providing Stock Market News & Analysis.

There are several websites related to full-service stock brokers and have various research tools and facilities for their clients. These research tools have various symbol finders, charts for analytical and fundamental research and news flashes. The stockbrokers also send newsletters to their clients that have the latest stock market trends that help to predict the stock market movements.

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All the facilities that are provided by the stockbrokers have a price.

Full-service stock brokers charge the commission rates in the industry. If you are a beginner, then you need to opt for the full-service stockbroker.

Many beginners lack the basic knowledge that is required in stock trading.

2. Discount Stock Brokers The “Discount Brokers� as the name suggests gives discounts on their commissions. Their commissions are lower than full-service brokers. The reason for this is that these discount brokers don’t give trading advice and other similar facilities like analysis and research tools. A discount broker just provides a single service. He is responsible for the execution of the trading orders of the clients, selling and buying the orders and also for limiting and stopping the loss orders, You will not get any trading recommendations and also will not get any tips.

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The services of discount traders are opted by experienced traders who know how to take the trading decisions. The online stock brokers are the least expensive brokers. These stock brokers do not incur overhead charges. They charge lesser commissions on their services. It is very easy to set up an online firm, therefore, many brokers have jumped into the market. There is lots of competition due to which the stockbrokers have started charging lower commissions.

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