Discount Brokers

The major advantage lies in the lower commission rates. The commissions of discount brokers may be between $5-30 per trade, much lower than full service brokers who could charge $100-150 per trade.

The second advantage is that they allow you to easily trade for yourself. Because these brokers do not offer advice you will not be tempted to call the “Expert”. They could see a stock in a whole different way and only give you a bias one way or another making it harder to take your trades if you disagree with them.

The major disadvantage to these brokers however, is the do not offer advice. If you do not plan to make your own decisions you may want to pay a little extra for a full service broker.