To purchase stocks, a buyer needs to search out the appropriate stockbroker for the type of stock he wants to buy and have the funds available, advises Investopedia. A buyer can choose from four main types of stockbrokers: online or discount brokers, discount brokers with assistance, full-service brokers and money managers.
Online or discount brokers serve as order takers, according to Investopedia. They take buy or sell orders from customers by phone or through the Internet and put the orders through without offering financial advice. These online trading sites generally offer links through which a buyer may gain more information about stocks. Discount brokers with assistance can often be hired from these same firms. For an extra fee, a buyer may get access to extra research and information on the types of stocks he is seeking to buy. This information may include newsletters that offer general investing advice.
Full-service brokers get to know a buyer's financial situation and help buyers create a financial strategy that is best suited for their needs, reports Investopedia. Such help includes advice on creating an entire financial portfolio. These brokers charge higher fees than discount brokers. Money managers are top-notch financial professionals who generally handle large funds of investment capital for a buyer and have much more control over financial strategies.