Mixtaping Business Solutions

Brokerage firms can be classified into three classes: full service, discount and limited products.

House Full Service Brokerage
A house full service brokerage provides a range of investor services including securities recommendations, research on specific and individualized service. The company receives payments in the form of fees which are calculated according to the type of investment and the amount you are investing. A full-service firm is recommended for those individuals new to the market or have no time or desire to investigate and seek information on their own.

Discount Brokerage House
Although a discount brokerage firm can also provide a good range of financial services, vendors are not allowed to advise or make recommendations or to provide research materials. For these reasons, a discount brokerage firm can offer more moderate fees that houses a full-service brokerage. Experienced investors are able to make their own investment research, usually use a discount brokerage house.

Brokerage House Products Limited
This type of brokerage firm specializing in a limited number of products such as mutual funds, limited partnerships or certain specific bonds.

As an investor, you must select a brokerage firm in the same way you select any other professional service. Brokerage houses come in all sizes, from enterprises operated by an individual (“one-man”) to large international corporations. Similarly, the services offered by each company and the fees they charge can vary widely.

OPENING AN ACCOUNT

The contract for the new account
First Rule: When filling out the form to open a new account, be honest. Your account representative can not recommend investments unless he or she understands your financial situation and level of risk they want to take.

Rule Two: Do not sign the form until it is complete, the information is adequate, you understand and are willing to accept the terms and conditions to be imposed. Take your time, ask questions where necessary and carefully read the “fine print.”

Third Rule: Keep a copy of the opening. It is the basis for determining appropriate investments and appropriate for you.

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