This is an important step for beginning stock investors to know what are stock brokers. Brokers are people who will process the buying and selling of stocks. This is where you, the investor, would put an order for a certain stock, buy or sell.
Before that, you need to signup or register to a stock broker. Today, there are two kinds of brokers, the conventional and the online-based brokers. The traditional ones uses telephone when putting an order, that means the investor needs to call them if they want to trade.
While the online-based is more of a modern stock brokers who are are using the internet as the medium of communication between them and the investors. Mostly today, online brokers are more preferred due to convenience and much faster execution of orders.
If you're thinking or just beginning to venture into the stock market arena, you're going to need an online broker.
The first thing you check with a broker is the commission fees as every trade you do entails a commission or a fee for the broker. Normally, online brokers offers a much lower commission fees, this is one of the reason why they're preferred, in addition to convenience and quickness of executing an order.
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