Apr 14 2012
It is true that even though you can choose your own investments you must still use a stockbroker to execute the orders. You do not have to rely in their advice though it may be helpful. You can make your own selections but you will still require their services to invest. There was a time when you had no choice about the type of stockbroker to utilize. There was only one type of broker, the full service brokers, and they controlled the market.
There are four categories of brokers. These are the discount/online broker, the discount broker that provides advice, the full service broker and the money manager. The discount/online broker is basically an order taker. They do not offer advice and will not tell you when to buy or sell a stock. There may be research available and other account management tools but the choice of investment in the stock market is entirely up to you. The full service broker will provide recommendations on specific stocks and the broker will also access your situation to determine your needs and investment options.
This service is suitable for the investor that does not have the interest or time in making their investment decisions. The manager is made for the investor with a hefty investment sum. This broker will handle only significant portfolios and will invest and manage the entire account for a percentage of the assets under investment. This option can be expensive but very worthwhile in the long run. Whichever option that you choose make sure it suits your purpose and that you are covered by the Securities Investor Protection Corporation.
Tags: account, corporation, Guide, interest, investment, investor, manager, market, protection, research, service, stock, Stockbroker
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