Stock Market Investing 10 Minute Guide

Educate Yourself

The irony of the brokers and brokerage houses is that they create the need for an investor to educate him- or herself further regarding money management. This is a good thing. Depending on what type of brokerage service you select, minimum or maximum, you as the investor are ultimately responsible for ensuring your money is being effectively managed and you are being appropriately charged. Whether that means researching the trade yourself or researching the returns from your professional's advice, you make the call. This is your hard- earned cash ”make sure you know where every dime of it is going.

The 30-Second Recap

• Full service brokers have passed the Series 7 exam and are therefore licensed to provide all investment services. Full service brokers are usually very hands on, managing their clients ' accounts directly, and charge the highest fees.

• Discount brokers provide investment services piecemeal or   la carte, as preferred by the client. Discount broker clients are usually charged only for the services they use, generally less than full service brokers.

• E-brokers provide all investment services online. Additional services are also usually available on the telephone or through a live broker, although additional fees usually apply. E-brokers generally charge the least of the various brokers.