Now while the team Stockia.io is here to provide you the premium stock picks you need to have a successful investing career, the fact is that you can’t make it happen unless you know exactly how you are going to buy and sell shares of stocks, the right way! When it comes to buying and selling shares of stock, it isn’t like buying anything else. If you need groceries, you simply go to the grocery store. For electronics, there’s plenty of Best Buy’s out there or even some mom and pop electronic stores. Think of Amazon, they allow you to buy and sell almost anything an everything, except Amazon stock. The fact is that you can’t simply walk into a store and ask to purchase some of their stock, nor can you call up any companies and see if they’ll sell you any. When it comes to purchasing stocks, you must go through an intermediary, known as a broker or better yet, a stockbroker.
As a beginner investor, just getting into things, its important to understand what a brokerage is, and what types of brokers may br right for you right at this stage in the game. There are two types of brokers you should familiarize yourself with:
- A Full-Service Stock Broker
- An Online Brokerage or Broker.
Now each of these options certainly have their merits, as well as their faults. But depending on what you are looking for to begin your stock investing career, you might find one more valuable than the other. In this article, we will provide you with an understanding of these types of brokers.
Full-Service Brokers
Full-service brokers are a lot less common nowadays, and while they certainly still have a place in the world of investing, they aren’t as anywhere near as popular and vital to stock purchases as they once were. While they might not be as common, they are still very helpful and quite valuable, especially to beginner investors. When you think of stockbrokers from popular movies like Wall Street and Boiler Room, they’re very similar in the fact that they are usually well dressed, in a suit and tie, they will usually work on Wall Street for an investment brokerage – big or small. They will usually take the time to get to know you, your family life, your career, and your financial situation very well in order to create an investment plan for you. They usually have a set of stocks they’ve got to push, but they also can tailor your portfolio for things like your lifestyle, income, assets, and more.
They actually do provide a very valuable service, as they can help in a number of difference areas of financial planning – from estate planning and retirement help, to taxes and some general financial advice. However, because they offer such a all-encompassing service, they do charge quite a bit and are only worth the extra fees if they can make that money up for you. Generally, these types of full-service brokers are best suited for someone who makes a great living, might be somewhat older in age, and is looking to have someone else invest their money, as they might lack the patience or the time it takes to manage your own portfolio. In addition, a lot beginners could take advantage of their service, as a means of learning how investing works.
Online Discount Brokers
Online brokerages have become far more popular in recent years, and have a much larger following these days than an actual stockbroker. Online brokers do not provide most, if not all the other services of a full-service broker – no advisory services, no financial help, and there’s certainly no one asking you about your wife and kids. Essentially, they are just a means of taking your buy orders and sell orders. You don’t visit an office to hold meetings, or have phone convos in order to make trades – you simply login to your app or the website, and make your trades instantly. It does require having a basic knowledge of how many shares to buy, and how to execute your orders. Again, these types of brokerages do not offer much in terms of additional services. Some will offer you the ability to add a checking account, links to articles where they discuss certain stock tips, and they generally offer charts, allowing you to do your own technical analysis. Because you must essentially manage things yourself, the price is far lower than a full-service stockbroker, and will generally pay a few dollars per trade, or a fraction of a cent, per share you are buying or selling. In recent trends, many online brokerages such as Robinhood and Webull, are offering $0 commission trades, making them quite a popular choice for younger investors without a lot of money, that are well versed in using computers and smartphones. These are definitely for someone who has some knowledge about investing, or is computer savvy enough to learn quickly and can do enough research to figure out what to buy, when to buy it, and when to sell it.
Do What Works for You!
When you choose a brokerage, you must go for what fits your needs best and not just what everybody else is doing. Just because so many people are choosing to use Robinhood, doesn’t mean its right for you, especially not if you aren’t great at navigating the app yourself or choosing the right stocks. If you’ve got the money to pay someone to invest for you, then pay a stockbroker, it will help you get your feet wet, until you can learn to manage things yourself.
Regardless of which option is right for you, having a little extra help doesn’t hurt! So why not sign up Stockia.io’s Subscription Stock Picks today, and get the BEST buys across the market, sent directly to you PC or smartphone, today!