Full Service Brokers – Compare Full Service Stock Brokers

While a lot of people search around looking for the cheapest rates when choosing a broker, there is still a strong demand for the more traditional broker or full service broker. If you like a more passive investment style, or you just don’t want to learn how to use the myriad of discount broker trading platforms out there, then a full service broker who will place all your transactions for you and even often advice on what to invest in, might just be what your looking for.


When When choosing a full service broker there are services that you should look for and expect to be provided to you.

Advice

The kind of advice you can expect will be situated around buying and selling of the various instruments that they deal in. You won’t get advice on which investment sector is likely to be giving a higher return in the long term future because that can be a matter of largely guess work. You won’t get taxation and financial planning advice either.

Buying and selling advice will involve the timing factors needed to bring in maximum profits to your account based on your initial preference of market sectors. It will sometimes also include evaluations based on fundamental analysis in the market sectors that your account invests in. If your account invests in the banking sector then expect to be told which banks are performing and which are not. Don’t expect to be told to switch from the banking sector into the mining sector by a full service broker.

So you choose the investment and the full service broker will maximise the profits.

Research

All full service brokers do research on behalf of their clients. Their research is based on find the best case scenarios for their clients accounts. This research can be presented in the form of weekly or monthly emails or newsletters. The research will be broadly based opinions that have come about due to both fundamental and technical analysis of the relevant investment sectors. Individual portfolio advice can be given based on this research. You should ask that your portfolio be evaluated and modified based on this research. Advice based on current research should given upon on a regular basis as part of the service. Make it known if you do not which to be treated as part of the crowd in that investment sector.

Access to Floats

All full service brokers should make you aware of new floats that meet your investment requirements within your portfolio. When you start out with a full service broker, make them aware that this is a requirement of yours. Many brokers get first access to stocks when they are first listed because they are the underwriters of these stocks. Brokers will underwrite these floats if they see them as viable and profitable in the longer term. Many profitable experiences may be had if you can jump the gun and get in first on these floats.

Brokers typically charge a flat fee or a percent of the value of the trade for higher amounts. Your evaluation of this fee should take into account what services the broker offers in addition to trading.

This is only three of many services a full service broker can offer.

FOREX Brokers – Best FOREX Broker Comparisons

Forex brokers operate differently to most other types of brokers in that the commissions you pay will come out of the spread you are offered by your broker. A spread is measured in pips and relates to the difference between the value of the bid and offer. The market is a fast moving one, and your broker must be accessible and have a reliable trading platform.


A good full service broker will offer advice on currency trades and get you the best possible spread on your trade. Be sure to constantly revise your account fees and the terms and conditions offered with your full service broker as these are often negotiable based on the frequency of trading and the economic conditions at the time of trading.

A full service broker will be accredited in the currency rates that you choose to trade. Accreditation means that they will be familiar with the terms and rules set down by the exchange for trading currencies. Your broker should have the flexibility to swap between currencies given the market conditions at the time. Swapping currencies on your trading platform should not mean wide variations in the commissions taken by the broker.

Becoming familiar with your broker will mean talking constantly with them over the telephone. Getting advice is part of the service offered and telephone conversations are the best possible way to get this advice. Trends, daily currency news and economic news should be made available to you through email or newsletters provided by your broker.

Should you wish to maintain charting software, your full service broker can supply you with this. There are sources of software that can chart currency rates. Research will be required to find the right package to suit your needs.

You should check to see if your full service broker offer stop losses, do they have guaranteed stop losses what are the charges and fees? Stop losses are important when trading forex.

Enquire from your broker about slippage. Slippage is the price you request compared to price that you actually get. If there is slippage find a better forex broker that will minimise your slippage. Enquire from your broker as to where your money is held? If it is not through a reputable bank, stay away. Do not trade through those firms that hold your money in their own holding accounts.

Most importantly whatever broker you start with start off small and test the waters with your broker. These are just some of the research topics that you must look into when finding the best full service forex broker.

Discount Brokers – Best Discount Broker Comparisons

Discount brokers are a good option for you if you do your own research and make your own investing decisions. These brokers can explain the difference between stop limits, stop losses and other such terms but will not advise on market trends. Discount brokers are cheaper than full service brokers because you are not taking up their time asking for advice and they are only responsible for the transactions that surround buying and selling.

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Not all discount brokers are the same. Look for the following.

Fees

All discount brokers compete with each other based on fees. It is probably the most important consideration when evaluating which broker to use. Advertised fees are often not the whole story. Check for account maintenance fees, extra charges for stop loss orders, and fees charged because of inactivity within you account. Hidden fees can often add up to more than you expect.

Opening Balance

You will most likely find a large difference in open balance requirements between brokers. Most applications for new accounts require a cheque to be forwarded before the account can be opened. The less the better for you, but most brokers prefer larger deposits because this adds to their own company valuations.

Telephone Support 24/7

Because you will be trading from a computer platform with a software program, you will at some time need customer support. Your discount broker may have provided you with the software trading platform. When this stops working you will need to ring them. You will need to ring, not only to get it fixed, but to also cancel or continue trading. Before you decide on a broker, test the customer hotline for both trading and support issues. See how long it takes and how easy it is to get through. This could save you money in the longer term.

Free Incentives

Because the discount brokerage business is highly competitive, check to see who is offering the best incentives to join. Sometimes you will find free reports, free trades based on frequency of trading and many more incentives. If any of these incentives suit your style of trading then give then consideration.

Insurance Protection

Check to see that your funds are protected in the event of a meltdown within the brokerage firm. With financial institutions under increasing pressure on their bottom line it is not implausible to see firms folding and investor fund disappearing with them.

Futures Brokers – Best Futures Broker Comparisons

Finding a good futures broker will give you the right to buy or sell a commodity or financial instrument at a specified time in the future at a specified price. Finding the right futures broker means finding futures brokers that will allow you to trade with a team of technically accredited dealers 24 hours a day, 6 days a week.


Futures brokers will differ on the minimum deposit to open an account, monthly account fees (if any) as well as brokerage to buy and sell. Many futures brokers base commission on the volume and frequency of trades made, with a minimum commission per trade.

Futures are based on commodities or a financial instrument. When trading futures become familiar with the commodity of financial instrument you are trading as this will give you an edge in your trading. Your broker should have access to information pertaining to that commodity.

For example, if you are trading futures in pork bellies, cattle or soy, you would want your broker to have access to information such as climate, farm news, and overseas economic decisions. This will affect your choice in the type of contract you buy or sell. A full service, accredited broker can give you this information and advise you in the likely outcome of price movements.

Likewise, a full service broker that deals with financial instruments will be aware of likely trends and movements within that instrument because they have up to date information on price movements and likely outcomes.

Unless you specialise in a particular commodity or instrument it would be wiser to utilise the specialised services of a fully accredited full service futures broker. To find the best full service futures broker for your needs, you should compare costs and trading platforms. Many futures brokers can be found on the internet and within their pages you will find information on what they offer. Some have free trials and software that you can download to trial their services.

Most full service brokers are able to offer a managed fund to their clients. These can be helpful when you are not confident in your trading abilities and wish to park your money into a fund where all the trades are managed for you. This can be an excellent way to participate in the market and not have to worry about the daily trading activities needed to maximise your profits. A good full service futures broker can advise you on this.

For more information on full service future brokers contact the exchange that you are planning to trade within and have them advise you on a list of available brokers.

Option Brokers – Best Options Broker Comparisons

There are many brokers out there that can handle your options trades. You should look for a options broker that is accredited. The options broker must be accredited within the exchange that they are trading. Accreditation means that they have been tested and passed the exchanges requirements for understanding option trades.

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There can be different levels of accreditation offered to the broker and they must satisfy all requirements of the process. If a broker offers an execution-only service, without providing advice, accreditation may not be required for their representatives. Options can be traded through full service, or ‘advisory’ brokers, as well as discount, or ‘no advice’, brokers. A full service broker would need to be accredited in options trading to offer the service to you.

Choosing an options broker means looking at and comparing the different costs associated with trading. Costs such as commission charges can vary between brokers as they need to provide a competitive service to you. Your other costs will be internet and phone costs as well as banking fees and charges. If you are trading international exchanges then there could be further cost in exchange rates and money transfer fees.

Choosing an options broker also requires the comparing the trading platforms offered as part of the service. The trading platform can be broker sponsored or software that has to be purchased by you. Broker sponsored software can be reliable in that it is owned and operated by the broker through the internet.

Trades are usually reliable and straight to market without time delay. Using software that is downloaded and installed on your computer can be effective as this software will included charts and other features to help you make your decisions with the options trade. However, this software can cause problems if it does not function properly on your computer. Delays in trading and inaccurate data can be an issue.

Your options broker should be able to offer a competitive commission rate on transactions, an accurate reliable trading platform, and good advice on trading options. With the number and different combinations of options trades available to you, the broker should be able to advise you on your proposed trade.

Good advice also means getting the best price and spreads in combination trading. Be prepared to ask the full service broker for advice. Options can be complicated and fast moving market to trade. A good options broker will assist you with accurate, up to date information and advice.

For further information on what to look for in an options broker you can contact the exchange you are trading or talk directly to your broker.

Stock Brokers – Best Stock Broker Comparisons

When you buy and sell stocks, you are able to act on the information available to you as an investor. Most of this information can be obtained from reports and company documents released to the public. As an investor it can be a difficult task to read and absorb all the information available to you. This is assuming you can get all the information. This is where a stock broker comes in.

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A stock broker has the professional job of staying up to date with the latest market information. They use information available to them to look into the future and make calculated estimates of price movements.

Speed to Market

Because your broker has instant access to the markets and can place orders as you speak to him it becomes important to get to know your investment strategies and be able to relay them confidently to your broker. This means that you get the extra benefit of speed to market.

Larger Profits

When you, as a trader, might have decided to buy or sell and take your profits, a live broker will often recommend a better strategy that enhances your profit. Often buying or selling half your trade then waiting to maximise your profits on the remainder can increase your overall results. A broker may also suggest other strategies you are unaware of.

Stop Losses

Often a real broker can contact you when losses look like occurring and minimise these. You can leave instructions with your broker to stop losses when certain conditions are met. This can mean avoiding large overnight looses and the occurrence of being late to execute stops within the market.

New Issues

If your broker is aware of your interest in new stock issues or IPO’s (Initial Purchase Offers), he can purchase these on your behalf and jump ahead of the crowd. This is one of the best reasons to use a real broker.

Reduced Fees

The longer you use a broker the more you are to negotiate a reduction in their fees. This can save you real money in the long run. Your broker is aware of your trading frequency and can recalculate his fees based on the average number of trades you are most likely to make through his service.

Online Stock Brokers – Best Online Stock Broker

It’s always a good idea to compare the services and brokerage rates of several brokers before making a final decision on who to use as your broker. Below you will find some tips on what to consider when comparing online stock brokers. When you have decided that your best style of trading is to use an online broker then you must compare each broker to evaluate the best broker that meets your needs.

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Fees

Online brokers charge a commission based on the number of trades and some also charge account handling fees. Compare these to get the best rates possible. Commission based fees are calculated on a sliding scale and so the more the trade the less the cost per trade. Account handling fees will vary depending on the type of cash management account you use. If the broker supplies their own account then the cost will be minimal.

Trading platform

Online brokers usually supply their own trading platform. The software that you use can be web based or software that has to be downloaded and installed on your computer. Some online broker will charge for this service to cover their costs of maintenance and upgrades to the software.

Terms/conditions

Carefully read the terms and conditions offered by online brokers. Look for accounts that may be closed due to inactivity. Compare minimum account balances and interest rates that you will earn on cash balances. Check the timing and frequency of the application of fees and charges to your cash acconts.

Customer Service

Customer service becomes an important issue with an online account as you need to access this at some stage. You can check their accessibility before you join. You should check that you are not keep on ho;d for extended periods of time. Not only is this annoying, it also means that others are having issues with their accounts or trading platforms.

Phone access

All online brokers should have phone access. Phone access is important and means that you can continue trading. If your computer crashes, then you will need to ring the brokers and manually enter or close trades.

Financial statements

All online brokers should offer you financial statements so that you can reconcile your accounts. This becomes important at tax time and when discrepancies occur in your account.