4 Reasons to Choose a Discount Stock Broker

Working with a discount stock broker can provide you with a number of benefits as an investor. If you are thinking about working with a discount stock broker, here are a few reasons that you might want to do business with one.

1. Low Commissions

The biggest advantage of working with a discount stock broker is the low commissions. When you work with a full-service broker, you could potentially have to pay a large amount of money for a commission on each trade that you make. For example, he might take a certain percentage of the amount of each trade. When you work with a discount broker, this is not going to be the case. She is going to be able to give you the ability to trade stocks for a fraction of the price of a full-service broker. If you are the type of trader that frequently trades in the market, you are definitely going to want to consider working with a discount broker. The savings on the transaction costs is going to greatly increase your overall profits.

2. No Pressure

Another big advantage of working with a discount stock broker is that you are not going to be subjected to the high-pressure sales tactics of traditional brokers. When you work with a full-service broker, he is going to try to influence you to buy certain stocks from time to time. He is going to try to steer you towards companies that he says will help your investment portfolio. In reality, he may just be trying to get a bigger commission or some type of a kickback from the company. When you work with a discount stockbroker, she is not going to provide you with any biased advice such as this. She is going to get a flat fee for every transaction, and she will not have an interest in which stocks you buy. If you do not like to be pressured, working with a discount stock broker can be a pleasure.

3. Information

Most discount stock brokers provide you with access to some of the best research materials and information currently available. Since they are allowing you to invest based on your decisions, they are going to provide you with ample information about the stock market. You should be able to get on to your trading platform and conduct thorough research about any company that you can find. This will allow you to make informed decisions and select only the best stocks for you.

4. Direct Access

Another good feature that discount stock brokers offer is direct access to the market. You are likely going to be able to place your trades directly from your trading platform. You are not going to have to make a phone call or talk to your broker every time that you want to buy or sell. You can simply log on to your platform and make the transaction with the click of a mouse.

blog comments powered by Disqus
Scottrade