¶ … right or wrong answer when it comes to evaluating discount vs. full-price stockbrokers. What is right for one individual is based on his or her needs, and the context of the situation. In general, though, the discount brokers are probably a better value when considering a number of variables, including: free stock information provided on the World Wide Web, capital gains taxes, and stock brokers' motivations (Investitor website).
In order to understand why the discount brokerage firms are "generally" better, one has to understand the difference between the two. Discount brokerage houses are essentially "order takers." You tell them what trades you want to make, and they execute them for a very small commission (usually somewhere around $5-$7 dollars a trade) (FoolU website).
In many cases, signing up for one of the online discount brokerages will earn individual free trades, as will large-scale trading. The reason why these brokerage houses charge so little per trade is that they simply "execute" the trade, and do not actively advise the investor on the right stocks to pick.
When choosing a brokerage house, this is the primary issue one has to rationalize -- do they want a stockbroker's advice, or can they make sound investments on their own? One of the main reasons why the discount brokers are considered better is because there is so much free information on the stock market nowadays. One can turn on the early morning TV, and get the same expert advice from MSNBC that they would from a professional stockbroker. Also, many of these online discount...
" This is significant because it shows how some critics of contrarian investing will often point to the various instances of speculation and assume that it is contrarian investing. In some cases the psychology of consumers can become so extreme, that the definition of what is speculative expands greatly. As a result, using contrarian investing in conjunction with other indicators / tools can help prudent investors and traders, be able to
Apart from that there is another type of risk which can surface even in case the market continues its upward march. In the event employees exercise their ESOPs in huge numbers, external shareholders could oppose the diluting impact of these option grants on the value of their shares. A situation might crop up that old possible tensions among employee interests and shareholder interests are not all of a sudden
Only eTrade and Waterhouse make good comparables in terms of being in the same discount brokerage business. Full service brokers are working with different revenue streams and ancillary businesses that greatly reduce their effectiveness as comparables. Waterhouse's relevance becomes suspect when you consider that they are no longer public. Their data is old - the beta of a discount brokerage in the telephone era is not especially useful to
The growth of Internet has led to a desire to understand the characteristics of the users, their reasons for using the service and what the users do when connected. A huge and expanding 'Internet watching' industry has progressed to provide such data. Some statistics can be collected directly from the Internet about traffic volumes and the geographical segmentation of its users and these provide a reasonably accurate picture of
(Economou and Trichias, 2009) Remuneration is stated to be as follows for each of these actors: (1) real estate brokers -- Commission based on percentage of the transaction value; (2) lawyers -- Commission based on percentage of the transaction value; (3) Notaries -- Commission base don percentage of the transaction value; (4) Civil Engineers -- According to specific regulations, taking into account elements of the property in question; and (5) Constructors -- percentage of
conflict of interest is at the core of nearly every ethical dilemma. A conflict of interest, simply put, is a situation in which the decision maker has two or more competing interests. Market timing, late trading, insider trading, illegal trading, fraud, partial disclosure, non-disclosure...the manifestation of conflicts of interest is seemingly endless. The business landscape today is a minefield of ethical disasters, some of which have already occurred, some
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