The good things about some of the discount brokerage firms you come across online is that they can be as little as 90% – 95% cheaper than the traditional full-service brokers. In order to benefit, however, you’re going to have to choose the right one. Also, keep in mind that the services are going to be limited. The setup with the discount brokers is that they will execute your orders to buy / sell investments, but aren’t expected to provide you with much advice. This setup has a plus side: you won’t have to deal with somebody trying to up-sell you or try and get you to invest in things you have no interest in.
You’ll still get some support, as some discount brokerage firms do offer some in-person customer service for times when you do need some assistance. You might be provided with tons of useful online resources and tools to help you get going, or even a “feature-rich workstation” designed to optimize your online trading speed and efficiency.
Don’t just jump at the cheapest broker you come across. It’s crucial that you consider all of the fees and not just the advertised ones. Just like any industry, there are sometimes “hidden” and “extra” fees. The ideal firm will have a section of fits site where it lays out all of the fees involved with every type of investment EFTs, Mutual Funds, Foreign Stock Commissions, etc… You might be require to make a minimum deposit in order to open an account. Some of these firms require a certain average balance over time. Determine what you’ll be able to afford keeping in the account if there is a minimum requirement.
Discount Brokerage Firms for Small Investments
Is it really possible to invest in stocks with little money? Of course it is and discount brokerage firms help you to do just that. This is much in part due to an increasing number of “fractional shares” offers. Instead of buying a pricey stock, you can buy a small piece of one share in many companies.
Since it’s a rule that investors should always diversify their portfolios, any brokerage firm you choose should provide you with a variety of investments. In addition to stocks, you should be given the option to put money in mutual funds, EFTs, bonds, and other types of investments.
One of the better known discount brokerage firms that you’ll want to consider is Zacks Trade. This firm is ideal for active traders looking for a comprehensive trading platform with low fees. Get all of the tools and resources you’ll need for making informed decisions. Zacks Trade also offers good customer support and a variety of trading opportunities.