(Online) Brokers Explained: From Stock Certificates to Full-Service and Discount Brokerage Services

In approximately one minute, this video explains what brokers in general and online brokers in particular are all about.


Let's just say that the days of "old school" brokerage, which involved actual stock certificates, are long gone. Furthermore, today's client-broker relationship tends to revolve around quasi-complete automation, with pretty much no human interaction being required (not even a quick phone call, let alone a face to face conversation with an actual "human" broker).


At the end of the day, it's up to you what you prefer in terms of online brokerage. Some clients are willing to pay extra for so-called full-service brokerage services, with the brokers in question making money through more than just commissions and offering anything from consulting to access to various metrics.


Alternatively, you can simply let various online brokers compete on price for your business by searching for a decent discount brokerage service. There will be less proverbial bells and whistles involved but for most consumers, today's "bare minimum" is more than enough. Again, it's ultimately all up to you :)