How to Invest Online
If you think this might be a good time to make some money on the stock market and want to get involved in online stock trading then you will first need to register with a broker.
The type of broker you choose will depend on your requirements. If you are a high net worth individual that needs advice and a wide range of services you will need a Full Service Broker such as Goldman Sachs. If all you want is the ability to buy and sell stocks and shares with no advice from your broker then you will need a Discount Broker.
Full-service brokers are expensive (around $150 per trade) but can provide advice on which stocks to trade, as well as such things as retirement planning and taxes. However, as they are paid on commission there is the possiblity that unscrupulous brokers will
advise you to trade when it is not necessary, purely to bump up the fees they can charge you.
Discount brokers are cheap (a few dollars per trade) but do not provide advice, you are on your own. They will execute your order, but that is all. You can execute your order either over the phone or online (online is generally cheaper than over the phone). They do however charge a fee if you don’t trade often enough. This fee is generally around $15-$20 per quarter.
The vast majority of small investors these days use online discount brokers.
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