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Choosing a stockbroker an important a decision for investors. Essentially, a stockbroker broker is the “middleman”, a professional who handles client orders, and buys and sell securities. Stockbrokers are licensed professionals. In order to be a stockbroker in the United States, a person must pass two exams administered by the National Association of Securities and Dealers (NASD). Licensed stockbrokers have passed the Series 7 and Series 63 exams, which certifies that the broker is informed about the products and services he or she is selling and understands all the regulations and requirements about buying and selling stocks, bonds, and mutual funds. A traditional brokerage firm and broker provides clients with one-on-one advice and expertise. A full service broker usually provides extensive research about the portfolio and potential investment opportunities and updates the investor about his or her portfolio. A full service broker is available to respond to questions or concerns almost immediately and works to build a personal and professional relationship with his or her clients. Traditional brokers offer more products and receive a commission, sometimes as high as $150.00, per transaction. Some investors look for stockbrokers online, in an effort to save hefty commissions and other transaction fees. Many investors opt for a discount brokerage firm. These firms provide less personal attention, research, and hand holding. Discount brokerage firms are designed for the “do it yourself investor” who is comfortable researching stocks and companies and executing trades. Many discount firms encourage investors to utilize their online trading platforms. Stockbrokers are available to help execute trades and provide limited research and advice. Today, there are a number of discount and on-line brokerage firms, allowing everyone the opportunity to participate on online stock investing. Firms like E Trade began the trend the way by offering a broker free, to manage the stock market on your own. Since the introduction of on-line stock investing, buying, selling, and trading stocks has become easier and less expensive for both the consumer and the on-line firm. Stockbrokers online can offer varied levels of customer services, depending on the firm and platform. Online trading sites have a number of different levels of customer service available for users. Before opening an online account, investors should take a close look at price, the level of customer service offered, and how fast the trade can be executed. Different companies charge fees for dipping below minimum account balances, for each trade, or for account inactivity. Many firms also charge quarterly or annual maintenance fees. With more and more people using their smart phones and tablets, your brokerage firm should have an app or a technology platform that supports mobile trading. Be sure to explore the site’s customer service. While brick and mortar brokerage services, banks, and Wall Street are open from 9-5 daily, many on-line investors need after hours support. Most sites offer 24/7 customer support, via phone, email, or instant chat. While you may bot develop a long term personal relationship with a stockbroker trading online, a professional should be available to help answer any questions you have. Please understand that while investors can place buy and sell orders at any time, online stock investing and trades only occur during normal trading hours. So while you may be inspired to buy or sell shares after hours, the trade will not be executed until market opens in the morning. Stockbrokers trading on-line are an inexpensive alternative to traditional, full service brokers for do it your self investors. Be as diligent in selecting your online broker as you are in selecting your stocks. Are you looking for more information regarding stockbrokers online? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
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