To understand this particular infographic, first, we must have a rudimentary understanding of the buying and selling of stocks. The way I’ve always understood it is that, basically, an investor buys a stock in a company which in turn aids this company. The company then uses that money, and it’s understood that hopefully that money will be returned to the investor but at an increased amount. The investor can retrieve his or her earnings at any time; it all depends on how he or she feels about the investment. Sometimes, in these transactions, there is a middle-man or broker as these people are called.
The purpose of a broker is to bring buyers and sellers together. Brokers generally have a great understanding of the market and certain relationships with buyers and sellers to hopefully make it easier for everybody to make money.Whenever a trade occurs, the broker is awarded a certain commission. Today, we will be discussing discount brokers, who are brokers that charge significantly less for their services, yet do not offer any investment advice.
So, if you’re a small time investor, or thinking about investing, this infographic is a great starting point for you. As you can see, after reviewing several discount brokers, the Peter Leeds team has brought us 23 of the best out there. From Ameritrade to Tradestation, they evaluated each of these discount brokers to help you find the best investment opportunities.
Commissions for these discount brokers averaged at about $7.25, with EOption having the lowest rate and Trading Direct having the highest.
It’s also interesting to see the professionalism of these companies. For instance, Scottrade was rated extremely high when it came to email help and professionalism, yet failed to meet the standard when it came to customer service over the phone. You win some and lose some, I guess.
Unfortunately, this is where we part ways this time, Dailyinfographic.com readers. I hope you’ve enjoyed today’s infographic, and I hope this helps you investors out there with your next move. Have a great day! [via]