If you are a trader or investor and you want to locate the top stock brokers in the profession, your first step is to start searching the internet. There are dozens of brokers who advertise their services on the internet. They also provide information on their rates and fess so you can compare each one against their competitors.

Being a stock broker is a highly competitive business to be in, especially in today’s market. Not only is it a competitive industry but it is also a volatile one. Traders are becoming very savvy to the various terminologies and strategies associated with buying and selling transactions and market trends. So stock brokers have to be all that more experienced and knowledgeable in order to add value to traders and investors.

Most experienced traders and investors use a discount stock broker rather than full service stock brokers. This is one of the most competitive areas of the trading industry. Since more and more people are leaning towards making their own investment decisions, the full services brokerage firms need to add even more value than advice and a robust platform. Since the discount brokerages offer platforms for traders to use to process their buying and selling transactions, the top stock brokers have to be even more creative and knowledgeable in order to attract business.

The top brokers have to be accredited in order to offer trading advice. They also have to have years of experience in the particular exchanges and markets in which a trader will be accessing. Being available twenty four hours a day, six days a week is vitally important to investors since they have to make quick decisions around stocks and options in a fast moving market.

The top stock brokers provide advice on market trends, global economies, currencies, and other factors that are associated with a particular stock, industry or market. This is one of the fastest pace industries in today’s society and it requires extremely fast access in order to be successful. If stock brokers do not provide insight to their clients that promote investment gains they will not be successful in this industry.

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Finding a broker that you can rely on and feel comfortable with is one of the basics of trading stocks. Sometimes you may need more that the bare minimums available at many online stock brokers.

All the work involved, the phone calls, the research, the money. It might just be easier to have an online stock broker. Someone you can e-mail or call when you need to do or need to know something. Someone that takes care of the headaches for you. Well now you can. With the growth of the web several companies have turned to the Internet to make a business as online stock brokers.

As a stock trader yourself you have several options available. Off hand there are at least 5 companies that are competing for your business right now, and all you have to do is choose one to make all the hassles of stock trading disappear. To make this decision easier, here’s a breakdown of the what you need to look for in your online stock broker.

How much do they charge? This is your hard earned money, right? So, you need to make sure it is spent accordingly. You need to check with each of your prospective online stock brokers and see how much they charge per trade. Take TD Ameritrade for example, as of April 2008 they are charging $9.99 a trade with no additional fees. On the other hand ScotTrade is only charging $7, and at both of these companies you can actually pay less if you are an elite member of their trading site.

In addition you want to check their terms of services and other pricing costs, such as how much it costs to have an inactive account, how much they charge to actually speak to a broker and get their opinions on your trades, etc. Each company will also have a different minimum account balance to start an account. ScotTrade’s is only $500 to get started with, while others might be 2-4 times more than that depending on the account you open.

Another thing you want to be sure of is the tools you have available to you for research, making decisions, accessibility to your money, and how you will receive customer service. Fortunately the top online stock broker companies all have high ranked customer service, so that shouldn’t be difficult at all. All of them also offer a website that shows you all the tools you will have available to make your decisions, as well as any access you will have to brokers. Some of the companies also offer nationwide and even international branches that you can visit if you have issues with your accounts.

As for research you should be able to get great research information from all of the top companies. If you are an elite customer you will have even better research information which will enable you to make better decisions. There are third parties that offer unbiased research and this is available from most online stock brokers.

Although it may seem like there is a lot to think about in choosing your online stock broker, remember that in the end it will be much easier for you, as you will have your money in the hands of experts and you can be as hands on or off as you want.

The following article covers a topic that has recently moved to center stage–at least it seems that way. If you’ve been thinking you need to know more about it, here’s your opportunity.

How can you put a limit on learning more? The next section may contain that one little bit of wisdom that changes everything.

I should begin this by saying that stock brokers are expensive. However, if you are new to the world of investing and find the terminology, expenses, fees, and process the least bit confusing it is best to utilize the services of a stock broker that is going to work with you every step of the way and explain the way things work at least for the first several trades you make. Stock brokers are paid through commissions that are earned every time you buy or sell a stock.

For this reason they are great for advising you on which stocks to buy or sell though their main goal is to keep you buying and selling because they earn money on each transaction so be sure to take their advice, to some degree, with a grain of salt.

That being said a good stock broker can help you learn the ropes about trading stocks when you are just beginning in your investment efforts. Their advice and services can be invaluable and well worth every penny you pay them provided you find a broker that is going to work with you even though you are, presumably, going to be trading on a much smaller scale than some of their high dollar clients. In other words you want someone that is going to work with you even though you aren’t likely to be their biggest client anytime in the near future unless they make some excellent decisions on your behalf.

Stock brokers can also provide excellent insight and invaluable advice on how to diversify your portfolio in order to minimize your risks as far as your investments go while building the foundation for a successful future trading in the market. More importantly a stock broker can help you identify diamonds in the stock business that may be disguised as lumps of coal. They have a great deal of experience in this business, even more education, and often times excellent gut instincts about what is coming next in a given stock.

This by no means indicates that the services or advice of stock brokers is somehow infallible. This isn’t the case at all. Everyone makes mistakes but by following the advice of a stock broker you are much likely to make fewer mistakes than if you were going it alone because you can learn from past mistakes the brokers have made and hopefully avoid future mistakes of your own by taking their advice and guidance to heart.

If the high commissions of brick and mortar brokerages are hard to come by or sacrifice you may want to consider an online stock broker. While they often won’t have the pedigree and credentials of some of the stock broker experts that can be found in many financial institutions on Wall Street they also do not charge commissions that match those pedigrees and can be invaluable in helping you make the most of your stock market investments.

Learn when to take the advice that is given for what it is worth and use it to your advantage. Their advice can still help you much more than trying to muddle through the intricacies of investing and online trading on your own.

If you decide not to go with a stock broker you need to understand that you are doing so at your own risk. The roads of the stock market are difficult to navigate even for those that have some degree of experience and there are few roadmaps to help guide you along the way. A qualified and competent stock broker can be the difference between a successful investment future and a losing your shirt on your first time out of the gate. Take advantage of the benefit that a stock broker can bring to the table until you are confident in your ability to navigate these waters on your own. It can make all the difference in the world to your portfolio.

Now that wasn’t hard at all, was it? And you’ve earned a wealth of knowledge, just from taking some time to study an expert’s word on Stock Brokers.

Well, most people probably wouldn’t put stock brokers up there with doctors and lawyers, but brokers do enjoy a high social status. This is one reason why a lot of young people today want to become stock brokers.

And while brokers don’t have to go through years of medical or law school, they do face some rigorous examination.

Educational Requirements for Stock Brokers

Believe it or not, brokers aren’t actually required to have college degrees. In practice, most stock brokers do have degrees in business, accounting, or finance, and most reputable brokerage firms require their brokers to have four-year degrees from institutions of higher learning.

Surprisingly, many stock brokers have degrees in non-business related subjects, such as psychology or engineering. In general, intelligence is a requisite for success, since good brokers must be able to understand the complexities of the financial markets and communicate with their affluent, well-educated clients.

Although college may not technically be required, every couple of years, stock brokers must take new classes to stay abreast of new financial products, and more importantly, new laws and regulations governing the markets. Brokers who fail to comply with these continuing educational requirements can have their stock brokers’ licenses revoked.

The Dreaded Series 7

The most difficult challenge for most brokers is passing the Series 7 exam.

The Series 7 is a grueling, seven-hour test on a wide variety of topics. Officially, would-be stock brokers are supposed to study for eight weeks, but many brokerage firms rush their new hires into the test with as little as two weeks of study time.

A score of 70 percent is required to pass the Series 7, and a full one-third of test-takers fail. The average score for those who do pass is a lowly 73 percent – which doesn’t reflect very well on brokers as professionals.

Topics Covered on the Series 7

The Series 7 manual is a 700+ page tome broken into 17 units. The first unit is on the basics of equity securities (stocks). Unit 2 is all about debt securities (bonds). Master these concepts and you’re well on your way to passing the exam.

But Units 3 and 4 are most vital. They cover municipal bonds and options, respectively, and make up about 40 percent of the Series 7 exam. Be sure to master the various options strategies, such as straddles, collars, debit spreads, credit spreads, and the like.

Most of the remaining chapters are boring, even for stock market buffs, as they deal with rules, regulations, and procedures.

The topics include customer accounts, margin, issuing securities (i.e. the underwriting process), trading securities (i.e. technical stuff like computerized order routing), brokerage support services, investment company products (mutual funds, REITS, and unit trusts), retirement plans, variable annuities, direct participation plans, economics and analysis, ethics, U.S. government and state rules and regulations, and finally, other SEC and SRO (self-regulatory organizations) rules and regulations.

But That’s Not All…

After passing the Series 7, new stock brokers are required to take additional tests. Although these tests are shorter and should be easier, new brokers are often unable to find time to study.

This is because most employers won’t even let you start working until after you pass the Series 7 – which, by the way, you can’t take unless you’re “sponsored” by a brokerage firm – but you’re expected to study for the Series 63 and other tests while working 10-12 hour days at your new job.

A career as a stock broker can be very challenging, but also very rewarding. Although as many as 90 percent of new brokers don’t make it beyond their first year, those who stay in the business for at least three years make an average of more than $100,000.

Do you have what it takes?

If you’re planning to invest in the stock market then you will need to understand the fundamentals of stock market investing first. One of the key things you need to know is that you will need to use a stock broker no matter what your knowledge of the market is. The stock broker can be a single person you hire or it can be done online through a firm like E*Trade. There are two huge two differences between the two and the online option has only become popular in recent years.

Twenty years ago when people would invest their money they would simply give their money to a stock broker and they would in turn invest in keeping some of the money. There use to also be many fees that were charged for these services and the broker made money off every deal even if you lost money.

Now that the competition is more fierce most of the fees are no longer in place, although you may run into some unexpected fees with your broker or firm it’s rarer of an occurrence. Costs of investing have lowered dramatically since the introduction of the stock market and stock brokers and it’s more affordable then ever. You can even invest online now using a stock broker firm and all you pay for is simply the transaction fees. You’re completely in control of your portfolio and investments, so if you plan on going this route make sure you have lots of experience and understand what you’re doing.

If you’re new to the stock market and investing in stocks then you should hire a local stock broker to handle your investments and questions. This is ideal for the first few years so that you can build a solid portfolio with the help of a broker. This method will cost a lot more then handling your own investments through an online firm but if you don’t know what you’re doing then this is the best option.

After you gain experience you should move your portfolio to an online firm like E*Trade and start choosing your own stocks to invest in. This is a lot cheaper and you’ll make more money by doing the work yourself, so once you’re capable of handling it you should.

So whether you choose a stock broker who you can meet in person to answer questions and help handle your portfolio or you decide to use a stock broker firm that can handle your transactions for you, you always need to use a middleman to buy you’re the stocks. There isn’t anyway around this and every single person who invests with stocks goes through either a stock broker or firm who is licensed to purchase stocks for you. Both are suitable for different people and depending upon your knowledge of the stock market will determine your decision of choosing a stock broker or firm. One is ideal for getting help whereas the other form is ideal for doing the work and investing yourself without help for the company.

It is already known that we live in a very fast-paced society. There couldn’t be any truer saying than “time is gold” especially for those who keep the ball rolling in the industry. In the trading business, double the meaning of the old saying and add money in the equation such as time plus money equals life then we turn to the solution of having an online stock broker.

Next problem is how to choose from dozens or even hundreds of stock brokers online?

Your Money

In the trading business, the most important is your money and other assets. It is crucial that every cent lost is worth the gain. Therefore, choose an online broker that will charge you with the best value for their services. Brokers get commissions according to how many trades they do for you. However, each trade costs less if the broker handles a lot of trades. It’s like getting a discount for bulk trades. Some brokers also ask for account handling charges but rates depend on the cash management account. Compare broker rates and choose what best suits your need.

It is important that traders know what happens to the money shelled out. Have your online stock broker report financial statements to be able to keep track of your money. This helps avoid inconsistencies in tax reports or even fraud.

Be sure to check and read carefully the terms and conditions of your working relationship with a broker. Take note of interest rates, minimum account balances, terms of charges to your account and if there could be additional charges at specific circumstances. Also check for the broker’s trading platform and whether you are going to be charged for the download, installation and upgrades of their software on your computer.

Your Time

What’s good about an online stock broker is that information and orders could be relayed in one click, real-time, wherever you are. It is important that your broker is available whenever you need something to be done on your account. Check for an online broker’s availability. Online brokers should have zero technical problems especially on their trading platforms. Aside from internet access, an online broker should also be reachable on phone. Make sure you do not get any problems with your broker being out of the country or you being put on hold for a long time. In a fast-paced world of trading, a second could mean several hundred dollars.

Your Life

It is not also bad to ask around with some friends or colleagues for an online broker that they’ve had experience with. Remember that a broker handles important assets to you that if possible, you’d rather handle on your own. Ask around for a reliable and honest broker. You’d hear if there are issues that a broker is having troubles with or if there is a potential issue in account handling. There could also be a lot of fraudulent brokers online so do not forget to look into the legitimacy of an online stock broker.

A successful businessman always has a dependable partner to work with. Compare and choose carefully.

The dot-com boom and bust could have never taken place without the emergence of online brokers. First, there was E-Trade (ET), which was quickly followed by rival Ameritrade (AMTD). Then, veteran discounter Charles Schwab (SCHW) joined the field of online stock brokers.

Several other companies came and went during the boom and bust, and the stock prices of these online brokers have been volatile, but historically, the online stock brokers have been good investments in their own right.

E-Trade – Godfather of Online Stock Brokers

E-Trade was the first of the online brokers. It went public in August of 1996 at a split-adjusted price of $2.81 per share. E-Trade stock now trades around $22 per share, so any lucky investor with $2,500 in extra money and the foresight to see how big online brokers would become back in ‘96 would now have close to $20,000 to show for his hunch.

Then again, if he would have sold out in 1999 when the stock hit its all-time high, he would have pocketed nearly three times as much.

Today, E-Trade is probably not a good buy. Intense competition among the online stock brokers have driven down the price of trades – that’s great for E-Trade’s customers, just not its own investors.

In an attempt to cut down on the competition, E-Trade tried to take over other online brokers in 2005, but failed when in a defensive move, online stock brokers Ameritrade and TD Waterhouse combined to form TD Ameritrade.

TD Ameritrade – Two Online Stock Brokers In One

Ameritrade was the second entrant in the field of online brokers when it went public in March of 1997 at $1.25 per share. Don’t you wish you would have picked up 1000 shares back then? If you did, you’d now be sitting on a cool $14,000 and change.

Like most other online brokers, Ameritrade’s stock has been very volatile. In less than six months in 1999, it shot up from single digits to around $60 per share. Then it began a long, painful slide for two and a half years, all the way back down to $5, before making four year a climb back to its current level of respectability.

The biggest news for Ameritrade came in 2005 when it purchased TD Waterhouse. The two online stock brokers formed a single company, now known as TD Ameritrade.

Charles Schwab – The Great Grand-Daddy of Online Stock Brokers

Charles Schwab has always been an innovative person and company. Schwab was the first discount brokerage firm of note in the U.S.; providing an avenue for investors to trade stocks without all the bells and whistles or the extra fees that come with them. Thus, it was only natural that this pioneering company would quickly join the ranks of online brokers.

Because Schwab’s business is more diversified than the other online stock brokers, its stock has not been as volatile. In fact, SCHW is currently trading near its five-year high, something shareholders of the other online brokers could only dream of.

Going into the future, this model of diversification is likely to lead to further growth, as Schwab just recently applied for and received a bank charter, which will allow it to do banking business for its clients.

Options Xpress – The New Kid on the Block

Options Xpress (OXPS) went public in January of 2005 at $20.09 per share. The stock quickly plummeted by 35 percent before staging a major bull run all the way to $34.94. As the youngest of the online stock brokers, Options Xpress probably has the most room for growth.

Furthermore, since the industry has been seeing its share of mergers and acquisitions, there is a good possibility that a larger company, such as E-Trade, may launch a takeover bid for Options Xpress. When this happens, share prices almost always go up.

Options Xpress did see its share price decline significantly in June of 2006, and as a smaller, newer company, it may be the riskiest of the online brokers.

Before acting on any investments discussed in this article, be sure to talk to your investment advisor.

People,who are really interested in the stock markets,are more likely to succeed as stock brokers, than those who are only interested in making money.

Stock brokers help their clients to buy and sell stocks, bonds, shares in mutual funds,insurance annuities and other financial products. Transactions in stock exchanges can only be conducted by members of the stock exchange, so the services of brokerage houses are required by individual investors who want to invest a few hundred dollars, as well as by corporations that invest millions of dollars.

The orders of clients, who wish to buy or sell securities, are relayed to the floor of a securities exchange by stock brokers, through their company`s computers or by phone. On the floor of a securities exchange, floor brokers negotiate with other floor brokers and complete the transaction.

If the security is not traded on an exchange,like over-the counter stocks and bonds, then the order is sent to the trading department of the company, where dealers buy and sell securities from other dealers. They use their own funds or those of the company for this and the client is told about the final price, once the transaction has been concluded.

Clients seek the advice of stock brokers on tax planning,investments, estate planning, insurance and other financial issues. Stock brokers advise their clients and help to design their investment portfolios, based on their objectives. Most stock brokers provide service to individual investors, while others focus on institutional investors.

Finding clients and building a client base is the most important part of the job. New stock brokers have to spend many hours on the phone to build up a client base. Many brokers join social organizations and give lectures on investment, to try and build their client base.

Stock brokers are continuously provided with the latest information about the prices of securities, by means of computers. Most stock brokers work under rather stressful conditions and at times the pace of work can become quite frenzied.

Established stock brokers usually work the standard 40 hours a week, but new brokers will have to put in longer hours.

A college education is important for people who want to become stock brokers, because they must be aware of economic conditions and trends. A college education is even more important if you want to join one of the large companies. Courses in Economics, finance and business administration can be helpful, though employers seldom require specialized academic training.

It is important to have good interpersonal skills and a strong desire to succeed. People who have the ability to sell and can handle frequent rejections are preferred by employers. Some employers check to see if employees have a clean record and a good credit history.

Applicants who are mature and have the ability to work independently are preferred and employers look for applicants who have a record of being successful in other jobs.

Stock brokers have to obtain a license by passing the General Securities Registered Representative Examination and they may also be required to post a bond. This examination can be taken by Individuals who have worked for four months with a brokerage firm. In several states candidates may also be required to take the Uniform Securities Agents State Law Examination.

These examinations are designed to ensure that candidates have knowledge about the stock exchange. Individuals who pass these tests are required to undergo training and take classes for up to two years. Stock brokers are expected to take training courses all through their careers, to keep up with the latest developments in the field.

It is hard enough to make money in the stock market. Many have picked the right stock, sold at the right time, only to see a good percent of their profits go to their broker. Even more painful is watching this money be paid for large commissions on a losing trade. There is no longer a need for this to happen with the proliferation of discount stock brokers.

In the early days of Wall Street there were only full service brokers. A full service broker would give you advice, select your stocks for you, and place your trades. This would often come at a steep price. Not only in terms of commissions but also in the form of bad, sometimes self serving, stock picks.

For many years this was the case. You had to call your broker, wait on hold, the only have him forget your name upon answering. Service often fell short of “full” but commissions but fees did not. Recently, however, this all changed. With the advent of the Internet the choices have expanded.

Today, there are a list of available brokerages as long as your arm. The old style full service brokers still exist. For those with very high net worth receiving advantageous terms and access to special opportunities like IPO’s it may be worth it. However, for the rest of us, it is not. Most of us should look for a good discount brokerage.

There are many factors to consider in this search. The first is commissions. Analyze closely the various commission structures as they can be tricky. Look at a base rate fee. Scrutinize the applicable per share charges, if any. Calculate what the commission would be in different trading scenarios. Most importantly, gauge what the resulting commission rates would be assuming your given trading style.

Other fees can be present. Look at fees associated with deposits and withdrawals. Look at others which can be triggered by account inactivity. The form of the fees are limited only by the imagination of those who devise them. Do not be tricked by a surprisingly low commission rate only to be socked with hidden fees.

The next important factor are executions. Low commissions and fees can be quickly made moot if a trade with that given brokerage takes 2 hours to execute. Speed of execution can be critical. This is especially so for those prone to trade a lot seeking defined entry and exit points. It is akin to running a race carrying a large rock.

There are many choices for you. Discount stock brokers have low commissions and fees. Some even offer free trades with various stipulations. Whichever you choose, be a smart consumer. Do your research, read independent reviews, and keep your profits for your family, not your broker!

At some point most of us will want to choose a stock broker.  Stock brokers like most service firms vary a lot. Choosing a broker is about prioritizing your investing needs and getting what you value. Your first pick for a broker may not have everything you want but be sure they have the most important things.

Five features you need to review when looking for a broker.

Trading commissions – Investing means transactions costs.  While there is no way around this you should try to keep these to a minimum.  One piece is commissions. 

The commission rate will depend on the level of service from that broker.  Stock brokers that focus on independent investors will have lower commissions than full service brokers.  I personally choose lower service brokers with low commissions and flat fees for stocks.



Minimum deposits and hidden fees – A lot of online brokers require a minimum deposit to open an account. Is the $10,000 minimum account size all right with you? No? Then move on. Also, some brokers, may offer $0 minimum, but then charge you a maintenance fee.  This is when you want to break out the magnifying glass and be sure to read their fine print.

Online access – Make sure that you can trade via a secure and robust web based trading platform and not have to install software from the broker.  Stock trading (especially profitable stock trading) is difficult enough with out not being able to trade because you’re not home.

Investment products – The investment product line offered varies significantly from broker to broker. Stock, bonds, and options are usually offered by most and some brokers will expand into derivatives. You also should check if the broker has retirement accounts and IRA’s.  It’s important to get a broker that has products you want.



Check legitimacy – A very important step is to do a quick background check on the broker.  Stock brokers must be registered with the Financial Industry Regulatory Authority, which regulates securities firms in the U.S.  Also make sure they have insurance through Securities Investor Protection Corporation (SIPC).

So be sure to keep these things in mind while looking for a broker.  Stock investing is challenging but with a broker that fits your needs it will be that much easier.