Discount Brokers

Discount Brokers
Discount brokers are stockbrokers who help carry a​ wide variety of​ business deals .​
Generally, they accept orders for stock, stock options and futures trading deals .​
They are known by different names such as​ discount commodity brokers, discount stockbrokers and discount real estate brokers .​
Compared to​ full-service brokers, discount brokers buy and sell orders at​ a​ reduced commission .​
Discount brokers allow a​ person to​ buy no-load mutual funds at​ a​ reduced commission .​
Through an​ arrangement with a​ particular fund, free mutual funds are sometimes offered .​
Discount brokers will often provide (for a​ small fee) a​ free 1-page Standard & Poor's Stock report on the stocks you are requesting and a​ 5-10-page research report .​
Twenty-four hour telephone stock quotes services are also provided, allowing the person to​ build trades.
There are four types of​ discount brokerage firms, full-service, discount, deep discount and computer or​ electronic .​
Full-service discount brokers offer services that are identical to​ a​ full-service broker .​
They own local branch offices for personal service, newsletters, a​ personal account representative and considerable literature .​
Discount firms carry out the same functions as​ that of​ the full-service discount firms .​
The only difference is​ they don’t have local branches .​
Their commissions are around 1/3rd the price of​ a​ full-service agent .​
Deep discount brokers are stock brokers who execute only stock and option trades .​
They have fixed commissions (flat fee) for any trade of​ any size .​
Computer or​ electronic brokers offer services similar to​ deep discount brokers .​
Their service is​ primarily aimed at​ computer users who trade via the internet .​
Some discount brokers, who cannot be clearly categorized, fall between discount and deep discount .​
They cater to​ skilled, high-volume traders with high demands for quality service.