TSME #013 How to Open an Online Brokerage Account

In order to make money in the stock market, you must first open a brokerage account. Tyrone Jackson, The Wealthy Investor, explains the different types of accounts and how to get started. 

There are 3 different types of online trading accounts:

1) Full Service

Most of the people who open a full service account are not doing a lot of online trading. They want the advice of a professional. These types of brokerage houses take much larger commissions. 

Example: Edward Jones

2) Discount 

With a discount brokerage account you have the choice of having someone guide you through the stock market process or you can just trade online for one flat rate. That rate is usually from around $9.95 to buy or sell a stock to $29 for a broker assisted trade. There is still a commission, but that commission is tax deductible.   

Examples: TD Ameritrade, Fidelity, and Charles Schwab

3) Deep Discount 

Some people like paying as little as possible to open their account. A deep discount brokerage account has lower commissions but it is only open during the stock market hours. You also lose hours and availability of customer support.   

Example: E*Trade