As the name implies, these brokers will simply do as they are told and nothing else. Now that's more like it. Naturally, this type of service is the cheapest of the three. For that reason they are often called Discount Brokers. Their lower charges, combined with the fact that we believe you should make your own decisions when it comes to investing, mean this is the Foolish choice whichever way you look at it.
All online brokers are execution-only.
But you can also trade by phone. In fact some dealers even offer a touch-tone service with unique numbers you can dial representing each individual company. Trading by carrier pigeon used to be popular, too, but this method went into decline after the Great Carrier Pigeon Scandal of 1958, when several top pigeons were arrested for insider dealing. So now we are left with just two methods. The brokers are able to pass on these cost savings to you, and the savings can be quite significant.