What is a broker? What to know about the intermediary that helps investors buy stocks

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 51%

Nigeria News News

Here's what you need to know about the investment brokerage industry, and how online brokers have changed the landscape of investing as we know it. Presented by Fidelity.

— to slash commission fees in recent years in the hopes of capturing a greater market share of self-directed investors.Keep in mind that just because you can manage your own portfolio, doesn't necessarily mean you should. There remain instances in which an investor, specifically a high-net worth individual or one with advanced financial needs , may still wish to work directly with a full-service broker.

Deciding whether to work with a discount or full-service broker depends on factors like an individual's investment knowledge and financial status. Most discount brokers who specialize in the stock market are able to charge low commission fees by operating through online platforms with low overhead costs.

"I don't think one [strategy] is necessarily better than another, it's just where you are in your life," says Sun. Though the lower cost is the major lure to working with a discount broker, it should be noted that they don't offer investment advice, tax planning, or personal consultations on their clients' behalf.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Chinese stocks are now among Asia's worst-performing as Beijing crackdown spooks investorsDays of heavy selling in Chinese stocks have left two major indexes in the country as the worst-performing markets of Asia-Pacific.
Source: CNBC - 🏆 12. / 72 Read more »

U.S. stock futures mixed as investors weigh up big tech earnings, wait for Fed outcomeStock futures traded mixed ahead of a Fed decision, and after major indexes snapped five-day winning streaks. good
Source: MarketWatch - 🏆 3. / 97 Read more »