What are Discount Brokers?

Discount brokers can be a great way for some consumers to get into and participate in the stock market or the bond market. However, discount brokers are not for everyone. There are severe limitations that come with working with discount brokers and consumers should understand what those limitations are before they sign on with one.

This article explores some of the issues that you will face when working through discount brokers. First, it should be understood that there are discount brokers and there are full service brokers. There is a difference between the two.

Discount brokers are a fine choice if you want to participate in the stock market but do not need any advice before making your stock picks. Discount brokers do not offer clients any investment advice and do not walk through the process of investing. For this reason, you have to know what you are doing or working with this type of broker can be a big mistake.

If you are comfortable doing your own research and making your ... more.

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