This clearing service is offered at a reduced rate of brokerage, which combined with the bull market, has generated enormous growth in the discount brokerage industry. The effect on traditional brokers has been somewhat diluted by the bull market and the growth in the number of share owning Australians. The whole market has grown but the signs are there that traditional broking is getting much tougher. In coming years, brokers will start promoting themselves and their services like never before and only the best operators will survive. The point of this article is to talk about the pitfalls of investors using Internet brokers.
Execution is the process of actually buying or selling stock good execution is worth paying for.
The biggest mistake is inexperienced people using market orders. A market order is one that executes the trade at whatever price it can. If there is 1000 shares on the offer and you buy 2000 shares at market the order will buy the 1000 shares on offer and then buy the next 1000 at higher levels. This can be a very expensive exercise. I don't use internet brokers.