3. DECIDE IF A BROKER IS RIGHT FOR YOU
Having a good relationship with a broker is essential to making money in the stock market. You want to employ someone you can trust with your assets. Knowing the types of brokers that are available will help you decide if they are right for you.
Full-service broker Full-service brokers handle all aspects of your trading. They decide when it is a good time to buy or sell and what stocks will help to make you money. The upside of a full-service broker is that your trading will require less work on your part. The downside is that full-service brokers get paid by their activity and not on the quality of the trades, so you can't guarantee they have your best interest at heart.
Discount broker If you have some knowledge of how the stock market works, a discount broker is probably your best bet. Using a discount broker requires more work on your part, but you will have more control over your investments and the discount broker makes money on the trade quality. The more you make, the more the discount broker makes.
Online brokers If you want to do your investing from the comfort of your living room you could use the services of an online broker. While you won't get the personal attention you might get from a local broker, you may also avoid many of the headaches. Online brokers offer all the services you would get from a regular broker if you need the help or you can go it alone for a small fee per trade.
ETrade offers all the services of a broker if needed and low per trade rates that are easy to understand.
Ameritrade offers flat rate trading if you don't require broker help.
Some websites offer free trading as an incentive to join. Zecco has ten free trades a month and a rate of only $3.50 after that.
