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  Category: Articles » Business » Trading » Article

How To Choose A Stockbroker

By T J Madigan

The world has changed incredibly over the past couple of decades and there is no greater indication of that than in the world of stock trading and investing.

In times gone-by, the majority of investors would pick their stocks via a traditional stockbroker at a brokerage firm. The transaction would involve paper based stock certificates being issued to the stock buyer. The types of investments available to the "average investor" were also highly limited.

Today, the same "average investor" can trade anything from single stocks to currencies, commodities and indices all with the simple click of a mouse and without ever leaving the home.

But with choice comes confusion deciding on what stockbroker fits your needs like a glove can be a daunting process. This guide has been designed to give you an understanding of the different types of stockbroker services that exist, and help you decide which one is right for you.

Here are just a few of the many issues that you will need to consider when deciding on your preferred stockbroker:

- Do you feel comfortable executing your trades online, with one click ease, or do you prefer doing your business with an actual person, on the phone or even in person? The availability of technology has meant that firms are able to process large volumes of trades cheaply, so if you don't need a person to talk with to make your trades then there are a large number of "no frills" online brokerage services that will allow you to do business for a few dollars per trade.
- How many transactions you make will go a large way towards deciding which brokerage service is the right one for you. Some firms will offer price breaks for frequent traders so if you're a day trader then you can find a service that's far better equipped for your needs than if you were an infrequent investor.
- Do you require a basic "execution only" service or do you require some advice when making your trades? Clearly, an execution only service is going to be cheaper.
About the Author
T J Madigan has been established in online business since 1998 and is director of a number of successful online projects one of which is Online Stock Trading - your best source for FREE Online Stock Trading Information.

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