How to Categorize Online Trading Brokers? by Praveen Ortec
Now one can find online trading brokers for trading and investing almost all financial instruments and markets. The services that trader get are getting better and better with time; now we can trade from our homes, can try a variety of trading systems, can better monitor the markets and news and can trade multiple products and markets at a time. But the services from brokers differ considerably.
Why to categorize online brokers? Like I said services and features of one broker differ considerably from others and often a broker is best for trading some markets and products. More over categorization make it easier for the trader or investor to choose the right broker who offers him/her most benefits. But the problem is one can categorize brokers according to many factors and things and not all categorization is worth mentioning. The two simplest categorizations according to the products and according to the pricing plans will do the work for you.
According to the products and markets that the broker offer access to, online trading brokers can be categorized into 1) stock brokers who let you to trade shares, notes and funds listed in a stock exchange, 2) options brokers who specialize in offering access to option contracts traded on option exchanges, 3) futures brokers who specialize on commodity markets trading futures contracts, 4) forex brokers who let traders to trade currency pairs and 5) multiple brokers who let you to trade a range of products and markets from one or more account. Most big brokerage firm are multiple brokers and forex brokers differ considerably from others as they don?"'""t charge any direct commissions.
You may already know the above type of brokers as it is very simple to identify and categorize them. But the following categorization based on trading services is some what difficult to identify and categorize. One you done the job, no further worries.
According to the commission charges and trading services, we can categorize brokers into different categories as 1) full service brokers traditional brokerage firms who charge high, around $100 per trade, but offer many products and markets to trade on and they are market experts. 2) discount ($20-40 per trade) and deep discount (less than $10 per trade) brokerage firms automate the trading procedure to offer some price benefits to traders but he trading assistance and market knowledge factors can not be of good class. 3) day trading brokers or direct access brokers offering their services for active traders like day traders, swing traders and scalpers, they charge much less but may have some higher account requirements.
NobleTrading is an Online Trading Broker for stock, options, futures, ETFs and forex currencies. Get the account features, trading tools, real-time market access and personalized customer service that every trader needs. NobleTrading just started a FaceBook page to offer more benefits to FaceBook users. Keep in touch with NobleTrading on FaceBook.
Article Source: ArticleSnatch Free Article Directory