Having this type of service can be highly useful to investors who are concerned about getting the best execution price on large trades. Full service brokers generally charge much higher commissions than discount brokers, although their commissions are negotiable, unlike discount brokers'. Discount Brokers Discount brokers offer trading services that are comparable to those of full-service brokers. They generally don't offer much detailed research or personalized advice. Some discount brokers only trade online, some only offer phone trading, and some offer both online and phone trading.
Commissions are generally a lot less than at full-service brokers.
Online Brokers One of the leading areas of the recent Internet boom has been the online brokerage industry. However, they generally don't have very good customer service, many have been unreliable during times of heavy trading, and they don't offer the personalized guidance that full service brokers offer. Trying to pick an online broker can be a challenge, given the number of brokers and the intensity of competition. Brokers are constantly bombarding investors with ads and promotional offers. If you are interested in opening an online brokerage account, we suggest that you pick a few brokers that have features you prefer and then do a detailed evaluation and comparison of those brokers.