Chapter 11
Understanding Investment Brokers
IN THIS CHAPTER
Identifying the different types of brokerage firms
Understanding the reality of “free” trading
Shopping for the best brokers
As I discuss in Chapter 1, many investment firms vie for your business. In addition to the major fund companies (for example, Fidelity, T. Rowe Price, Vanguard, and so on), investment brokerage firms are worth considering. There’s overlap among these firms because the leading fund companies also generally have brokerage offerings and divisions. (And, surely you’ve seen online ads for a new class of online-only brokers that pitch free trading among other potential perks.)
In this chapter, I focus on brokerage firms and which ones may be worthy of your dollars and investments. I also cut through the hype and tell you the truth about what you’re really getting or not getting with various brokers.
Getting Your Money’s Worth: Discount Brokers
When you hear the word discount, you probably think of adjectives like cheap, inferior-quality, and such. However, in the securities brokerage field, the discount brokers who place your trades at substantial discounts can offer you even better value and service ...
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