Investment broker are an intermediary between buyers and sellers of investments. Investment brokerage requires a license. Buyers and sellers instruct their investment brokers to execute trades on their behalf and in return they pay their broker a commission.
How Choose Investment Broke
There are many ways to choose broker
What the Broker Offers: All brokerage firms deal in basic securities, including buying and selling stocks and bonds on behalf of their clients. Many firms offer individual retirement accounts (IRAs), mutual funds and annuities. Some brokers execute orders for additional investment products, such as options and futures contracts.
Open Demo Accounts: Instead of jumping into full-fledged trading, one could begin with opening a demo account. During this time, ask a lot of questions to get familiar with the broker and the trading process. This would allow you to get a feel of the customer service support different brokers offer.
Trading Over the Internet: Leverage the Internet to trade via brokers. Online trading is a much cheaper option that doing the same via the phone or in person. The cost of trading over the Internet typically ranges from $7 to $15, whereas it couldrange between $25 and $100 in case of trading in person or over the phone.
Expenses Associated with Additional Advice: One should choose a broker who does not charge a huge fee for additional advice. A number of investment brokerage firms charge exorbitantly for conducting additional research or providing extra advice.
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