There are a couple of things to consider before you start looking for a broker, such as how much money you would like to invest in the market or whether or not you will need help to decide which shares to invest in. Read the important considerations before you start trading.
Types of stockbrokers and futures brokers
The main difference between brokers is whether they offer advice or not, they are either:
- Full service brokers
Offering advice on buying and selling securities, make recommendations, provide research and compile tailored investment plans. They typically charge a higher brokerage fee as a result of the advice and other services offered. Accredited advisers are also available for options, warrants and futures.
- Non-advisory brokers
Offering no recommendations or advice regarding the appropriateness of your decision, hence their brokerage fees tend to be lower. This is an attractive option for investors confident in their sharemarket knowledge and trading decisions. They are typically either internet based or telephone based.