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.
