A stock broker is a person or a firm that trades on its clients behalf, you tell them what you want to invest in and they will issue the buy or sell order. Some stock brokers also give out financial advice that you a charged for.

It wasn’t too long ago and investing was very expensive because you had to go through a full service broker which would give you advice on what to do and would charge you a hefty fee for it. Now there are a plethora of discount stock brokers such as Scottrade http://www.scottrade.com now you can trade stocks for a low fee such as $7 total.

I can think of three different types of stock brokers.

1. Full Service Broker - A full-service broker can provide a bunch of services such as investment research advice, tax planning and retirement planning.

2. Discount Broker – A discount broker let’s you buy and sell stocks at a low rate but doesn’t provide any investment advice.

3. Direct-Access Broker- A direct access broker lets you trade directly with the electronic communication networks (ECN’s) so you can trade faster. Active traders such as day traders tend to use Direct Access Brokers

So as you can tell there a few options for a stock broker and you really need to pick which one suits you needs.



Reed Floren runs a stock market forum where you can find answers to all your stock market questions register for your free membership at this stock market forum



Stocks & Shares Education Centre What is a share ? Different Kinds of Investment What exactly are Investments?
What is a Demat Account ? What are Premium Issues ? Primary & Secondary Markets
Stock Options Defination Investing Vs. Trading Stock Broker
Online Stock /Share Trading Stock Market Tips How Stock Market Works ?
You Buy Prices Fall - Article Stock Market Myths What is a Bull Market ?
What is Technical Analysis ? Saving VS. Investing What are Dividents ?
NET ASSET VALUE (NAV) Do you have a Trading Plan ? Common Trading Mistakes

Articles on Stock Market & Investments
Key to Success in Stock Market
The How To Trade Stock Market System
Investing in Indian Real Estate
Forecasting the Stock Market
12 Basic Stock Investing Rules Every Successful Investor Should Follow
Profit from a Falling Stock
Basics Of Stock Market
Stock Trading Psychology
What is Fundamental Analysis?
Your Best Stock Market Investment
Stocks and Futures - What is the Difference?
Understanding The Stock Market
Choosing a Stock Market Analyst
A Guide to High-Yield, High-Risk Stocks
The ABCs Of Stock Options
The Logic Behind Technical Analysis
Winning at Stock Trading

Stock Market Terms - Definition and Meaning

Stock Market Terms - Share Market Terminology - Investment Definitions, Financial Term Meaning A to Z