What is a Discount Broker?

When you start investing you should consider the possibility of using the services of a broker. There are different types of brokers and one of them is the so called discount broker. The latter will greatly facilitate your investing activities, since s/he will assist you in the buying and selling of securities. However, you should not expect from him/her to make recommendations regarding your investment decisions. Discount brokers are usually referred to as order takers. In return to their services they charge a commission fee. However, the amount they will charge you is significantly less than the commission of a full service broker.

An example of a discount broker is online brokers with few exceptions.

To be a successful investor you'll need the right trading platform. A professional-grade, award-winning platform that offers low cost trades like OptionHouse. The low cost trades will allow you to preserve more of your wealth and save money, which you can reinvest instead of paying brokerage commissions.
Opening a OptionsHouse account to benefit from their low $3.95 stock trades (currently they offer 100 free trades) is a smart idea.

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