| A lot of people like to dabble in the stock market to | | | | by having a large network of customers on the basis |
| make some extra money. To realize your objective, | | | | of their attractive prices and customer service. The |
| it makes sense to go in for a cheap stock broker. A | | | | best thing you can do is go for a cheap online stock |
| cheap stock broker is one who charges relatively low | | | | broker. |
| commissions on the buying and selling of shares. This | | | | The next question that arises is how to search for a |
| is important as you will often trade in a certain | | | | cheap broker. You can interact with a stock broker |
| quantum of stocks. Additionally, there is also the fact | | | | by visiting him/her physically or connecting via the |
| that the commission has to be paid at the time of | | | | phone. However, those will, again, cost you more |
| both buying and selling the same stock. A simple | | | | money. Well, there are many online brokers who |
| calculation will reveal why it makes perfect sense to | | | | provide such services at lesser rates. Some |
| go in for a cheap stock broker! | | | | prominent ones are TradeKing, Zecco, OptionsHouse |
| Now how do we distinguish a cheap or discount | | | | and Scottrade. Of these, Zecco offers a certain |
| stock broker from one who provides full-service. | | | | number of free trades if you maintain a certain |
| Typically, a full-service broker is one who will provide | | | | minimum monthly balance with them or trade |
| a wide gamut of financial products such as stocks, | | | | frequently. So, if you are an active player, this means |
| annuities, insurance, bonds and derivatives. In addition | | | | a win-win situation for you. TradeKing offers a low |
| to the products, such brokers also offer advice on | | | | rate on every stock trade that you do. They are |
| investment options to customers. In lieu for their | | | | known for their customer service and the range of |
| extensive services, full-service brokers usually charge | | | | tools they provide. |
| higher fees. Now it is important to understand that | | | | The essential things to know before deciding on a |
| these full-service brokers get paid commissions based | | | | cheap broker are reliability, knowledge and service. |
| on the stock activity that takes place. So it is in their | | | | You should feel safe in the knowledge that your |
| best interest to make you trade on an active basis | | | | broker is working in your best interests and not |
| which would enable them to earn higher commissions. | | | | taking you for a ride. The other thing is that you |
| In contrast to these full-service brokers, you have | | | | need to make sure you can reach out to your |
| the cheap broker. The latter will only facilitate in | | | | broker on the phone if you are unable to use the |
| trading your stocks. They usually don't offer | | | | online platform to see the share movement or make |
| specialized advice to customers on how to build their | | | | a transaction. Hence, make sure that your broker is |
| portfolio. Since they a limited scope of products and | | | | known to provide reasonably good customer service. |
| services, they also charge less fess from the | | | | These are some key things to bear in mind while |
| customers. They don't make money through | | | | looking for a cheap broker. |
| commissions. The cheap stock brokers earn money | | | | |