The stockbrokers charge commissions for carried out negotiations. These commissions have a varied cost and may affect your earnings and losses. The payment of commissions are usually based on three factors: the number of negotiated stocks. the cost of these and the total amount of the order.

Full-service and national brokerage firms generally charge the highest fees and commissions followed by the regional brokerage firms which tend to be cheaper marginally. Discount brokerage firms offer reduced commissions and do not charge fees or if so they are low fees for multiple services. Commissions are discounted even more at deep discount brokerage firms.

Paying $91 in a full-service brokerage firm instead of $7 at a deep discounter for the same business will really make a difference in its total return. If the stock price is $30 in a 100 stock negotiation, you are paying 3% of the stock price (91 divided by 3000) to a full service broker, against an 0.2% to a deep discounter broker.

To cover transaction costs through a full service commission broker the stock would have to boost to a 6% compared to the 0.4% raise in a deep discount broker case.

While larger the number of negotiations commissions to be paid become more significant in respect to supply and demand.

Individual brokers at full service brokerage firms earn commission depending on the negotiations volume they make. If clients put pressure on brokers they will sometimes be willing to discount their commissions, specially for large ACCOUNT clients.

The full service brokers get acquainted with their clients financial situation. give opinions over specific stocks and bonds and offer financial research service as asked by the client.

Investors pay high commissions for the advice and financial research that the full service brokerage firm gives. There is a personal relation between investor and a full service broker The full service brokerage firm offers a diversified range of financial services besides data, research reports and carry on business.

Discount brokerage firms offer reduced commissions and in some cases (not all), reduced services compared to those offered by the full service brokerage firms. Brokers in a discount brokerage firm make business for clients but do not necessarily provide the same personal service that full service brokers do give. In fact, personal brokers are not necessarily assigned to investors that use discount brokerage.

Researches could be or not available when needed. Some discount brokerage firms provide free research and others charge for information. Traditionally, deep discount firms offer the basic mechanical access to the market, market prices and business execution since going into on-line business; although the competence between deep discounters have resulted in a similar but limited introduction as well as a full service one. In these cases a certain amount of information and research are combined with a very low commission rate.

The electronic trading or on-line brokers allow you to allocate your own negotiations using a computer connected to internet. The on-line negotiation costs can vary from $5 to $40 each. Research is very accessible through these on-line negotiation services.

Some brokerage firms charge nominal amounts for Standard & Poor’s (S&P) reports or Zack’s research reports and others give it for free. On-line negotiations could become on-line research no matter what kind of brokerage firm you use.

The governments website, Edgar on-line provides data coming from thousands of SEC documents and lists of publicly negotiated companies.

If you feel you are using your computer correctly and do not need information or research from a personal broker you can benefit from the lowest commission rates charged by the on-line brokerage firms. You should also ask for the brokers custodial services fee structure, account management and of transactions before the final decision.