Types of Stock Brokers

Full Service Broker:

Charges the highest fees, usually has an in-house research team who researches and recommends stocks to buy. Sometimes the stock recommendations are those their company specializes in. This information is usually made public by the company. In a full service firm you are given your own personal broker who receives a commission for selling you the investment, but on the other hand they can possess valuable knowledge you do not have access to.

Discount Broker:

Gives you a discount in exchange for doing your own research. You are usually given a list of recommended stocks to research.

Online Broker:

Is is the newest form of broker. Their service is run online. You are given research, charts and investment news to research your own investments. Recommendations of stocks to research are sometimes given. They are usually the cheapest way to purchase investments, but you must know investment basics before you can use these services.