The first step toward smart investing is finding someone to handle your stock transactions. Options include a full-service brokerage firm, a discount brokerage firm, a bank or anyone else licensed to handle stock transactions. A retail or full-service brokerage firm provides research, recommendations and other services such as portfolio evaluation, tax information and comprehensive statements. A discount broker assumes the investor will be picking his own stocks and therefore does not offer research or recommendations.
Banks are similar to full-service brokerage firms, and offer traditional banking services as well.
Any prospective investor should talk to several types of brokers and determine whose services and investment philosophy best matches his own. Membership in this organization means that the securities in the broker s hands are insured up to a specified amount if the brokerage house goes out of business. Check on this coverage with any broker you are considering. What all brokers do. One thing that all trades have in common is that you will receive written confirmation that the transaction is complete.