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| Leighla |
 Posted: Tue Feb 22, 2005 9:35 am Post subject: Discount Broker? |
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Investing Associate
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Has anyone tried a discount broker? I have. They worked really well for me. If you do your own homework, you just tell them what you want to purchase for a fraction of what the big names want.
I like them better because there were no calls from brokers with "hot news" to buy or to sell (which they get commission for) and no unwanted advice. It was unwanted in my case anyway. Just a nice transaction and minimal fee. |
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| crisrn2003 |
| Posted: Thu Mar 03, 2005 8:07 pm Post subject: |
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Investing Associate
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| What is a discount broker and how do you find one? |
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| Leighla |
| Posted: Fri Mar 04, 2005 2:40 am Post subject: |
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Investing Associate
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Hi Cris,
A discount broker is a broker that doesn't give the range of services that a full price broker does. You do your research, contact them and they will make the purchase for you. They will hold your stock certificates for you and "manage" your account. By manage, they will send you a quarterly report.
They provide these services at a discount. I think the discount broker I used had a fee of $35 for a transaction of 1-50 shares. Where a company such as Scott and Stringfellow would charge $85 for the same transaction.
Ofcourse Scott and Stringfellow provides more services (I didn't need additional services.). Scott and Stringfellow (S& S) will have the brokers call and give advice on buying and selling, and hot tips on stock. Ofcourse the advice doesn't always work in your favor. My father deals with S & S
and they have made many a strong suggestion that actually cost him money on two fronts. S & S gets a transaction fee for every change you make in your account, and he suffered a loss following the stock broker's advice. Now he still uses them, but declines their advice.
To find a discount broker, look in the yellow pages under Stock Broker and discount broker will be under that heading. I suggest you go with one that is part of a national company. I used, "Securities Research", based in NY. I was happy with them. |
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| tylr |
| Posted: Thu Mar 10, 2005 8:18 am Post subject: |
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Investing Associate
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Discount brokers work best if you do your own DD and use online trading. For stocks, the least expensive is Freetrade, a division of Ameritrade. The first 20 trades per month is free and then there are tiers for the next sets of trades from $3 to zero again if exceeding 100 trades per month.
Do a Google search on 'discount brokers' and there should be plenty of entries to research. The popular and established ones are: Firsttrade, Scottrade, Brownco, and Ameritrade/Freetrade/Izone. |
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