 |
Using An Execution Only StockbrokerAn execution only stockbroker offers a 'dealing only' service where no advice is given. This means that the investor bears all responsibility regarding investment decisions. The instructions to deal are usually made online or by telephone. The service is commission based and usually very low cost to the investor. This is now the mainstay of most stockbroking firms. Not offering advice means that you, the investor, needs to know in advance, what company is to be purchased, in what amount and all analysis will have been completed without the broker being involved. Commission rates vary (as noted above) depending upon what sort of security is being bought or sold. The largest fees generally relate to foreign stocks and convertibles. Government securities (gilts, T-Bills etc), loan stocks (a type of bond or debt instrument) are usually the cheapest. For obvious reasons, it is difficult to give an exact guide as to the execution only stockbroker charges likely to be paid, as each transaction on any stock exchange is different, but I hope that this information will at least offer useful guidance as to the what and how they work. If this type of service is not for you, perhaps you might like to read about:
Stockbroker
|