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Online Brokers
One of the leading areas of the recent Internet boom has been the online brokerage industry. Online brokers are really a subset of discount brokers, with most representing the extreme end of discount brokers (commonly called deep-discount). Online brokers offer investors ultra-low commissions, the convenience of trading online, the ability to place orders at any time of the day, access to online research, quotes, and many other features (depending on the firm). 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. For the do-it-yourself individual investor, an online broker may be the ideal choice. 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. |
