Discount brokerage firms change with the times. And as the landscape surrounding discount brokerages continues to evolve, following technological and financial forces, you have to keep up with discount brokerage houses to be able to make the best presentations and know what your competitors are doing. The online discount brokerage industry should be followed closely so that you can remain competitive and land the big contracts.

Follow the trends that are affecting online discount brokers in a variety of ways. Read discount broker publications that can keep you updated with news and information. Subscribe to white papers and discount stock brokerage articles. Take advantage of discount brokering trade groups that keep members apprised of news and trends. Look for discount brokers news and trends in a number of ways.

1. Get email alerts and online discount brokerage newsletters

2. Participate in associations for discount brokerage firms

3. Subscribe to magazines for discount brokerage houses

Action Steps
The best contacts and resources to help you get it done

Get news alerts on discount brokerage firms

Set up a separate email account to get email alerts, RSS feeds and industry newsletters that will send you news as it happens, the latest trend pieces and information about what the major industry players are up to. Check this email daily so you don't miss out on important news.

I recommend: eCommerce Times is a must-read for discount brokers and those who work within the industry. Get news and participate in blogs and RSS news feeds at BloggingStocks.

Join discount stock brokerage groups

Association with other professionals in the same field will provide you with an inside track to news, often before it hits the press. Get involved with your trade association and take advantage of the networking opportunities to develop relationships as well as the group's newsletters and communication vehicles.

I recommend: Read the Journal of Financial Planning, which is the magazine put out for members of the Financial Planning Association, to keep up with industry trends. Check out the news and trend articles offered to members of the National Futures Association.

Read about the latest online discount brokerage news

Take time to read in-depth reports and magazines that cover the industry further than the headlines. Often the best information that can help drive your own business decisions comes from investigative reporting and research articles that take a deeper look into industry issues.

I recommend: Get the latest news and updates from the Registered Rep, a source for the investing community through newsletters, magazines and emails. The Stockbroker Fraud Blog is a good source for discount brokers to keep up with the news that affect the industry.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Encourage your staff to read publications and websites that can bring even more news about brokerage services. Make it fun by giving a prize to the team member who comes up with the best news tidbit each month.

In the world of investments, a broker is your liaison to the market, a licensed professional qualified to make recommendations and buy and sell on the stock exchange. Unlike full service brokers, discount brokers are paid a salary rather than a commission. It is their job to execute your trades rather than solicit your business or council you individually.

For a young investor starting out with a small pool of capital, discount brokers are usually the way to go because the savings over a full service broker are significant. Furthermore, many online discount brokerage firms offer a lot of useful information that can take the place of one-on-one advice. Investing on your own is a good way to learn about the market so that you become a smart, disciplined investor.

There is no magic-bullet solution for choosing the right discount brokerage firm for you. To do it well, you need to take your investment style into consideration, then navigate your way through a myriad of pricing structures and service options.

1. Identify your investment style.

2. Choose a pricing structure that compliments your trading habits.

3. Choose a discount and a deep discount brokerage firm. Discount brokers won't have local branches, but many do put out materials to help their investors. This is different from a deep discount brokerage firm that executes trades only.

Action Steps
The best contacts and resources to help you get it done

Start comparing discount brokers

Yes, it's a drag, but savvy investors know that there's no way around the task of comparing brokers. Put on your reading glasses and start scrolling through commission schedules and account minimums.

I recommend: The Motley Fool offers a breakdown of reputable online discount brokerage firms. Remember that this information represents an overview of comparable fees and services. See Investopedia's breakdown of common fees and how to avoid them.

Get the skinny from customers and experts

If you think you've found that special discount brokerage firm to be your investment partner, make sure exactly what they're about before you trust them with your money.

I recommend: Rate brokers at a glance by checking out Smart Money's chart of broker ratings. Be sure to search for your firm at FINRA, a national non-government securities regulator.

Learn the lingo

Striking out on your own with a discount or deep discount brokerage firm means that you're taking responsibility for making smart investing decisions. Take the time to learn about the market and stay on top of current conditions.

I recommend: Investopedia lists a number of free newsletters delivered straight to your inbox. Sign up to receive an investment term of the day, or keep track of what Warren Buffet was up to this week.

Find online discount brokers

Online discount brokers are the way to go for busy professionals who work long hours. This is your best bet if you don't want a lot of frills or extra charges for the full-service treatment you may not need.

I recommend: Fidelity, TD Ameritrade, Scottrade and ShareBuilder got high marks from Consumer Reviews for the best online discount brokers. Consumer Reviews also offers expert analysis and customer evaluation surveys from sources like Forbes, Barron's and J.D. Power and Associates.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you're an investor who likes to trade, choose a discount broker who charges a low fee for buying and selling. If you like to hold onto your stocks, avoid monthly inactivity fees. Of course, most investors are somewhere in between; if this is you, find a smart compromise.
• •  Discount brokerages who do business online are cheaper than discount brokerages that let you trade over the phone. However, make sure you can talk to a broker in case of an emergency.
• •  If you think you might want individualized help from time to time, choose a brokerage firm that gives you the option of speaking with an expert. Usually, you'll be charged on a per-transaction basis for this service.

Discount brokerage firms look for qualified candidates who have already received their broker licenses through the North American Securities Administrators Association (NASSA). Look for online and local training centers to study for the Series 63, Uniform Securities Agent State Law Examination, and the Series 66, Uniform Combined State Law Examination.

Continue with online discount brokerage professional development courses through other training centers and trade groups. Take the exams to qualify for the Financial Industry Regulatory Authority (FINRA) exam and get bonded to work in the industry. Add other training to build on your expertise. Watch for training for discount brokers for multiple industries in a number of places.

1. Find training to earn a discount broker license.

2. Diversify your work with training for additional discount brokerage certifications.

3. Join groups for discount brokerages that offer members professional development opportunities.

Action Steps
The best contacts and resources to help you get it done

Look for training to prepare to sit for online discount brokers exams

Fees for taking the broker license exam can run up to $1,000 so you want to be completely prepared when you sit for the tests. Take the study courses you need to help you pass the test the first time to begin working with a brokerage firm in the broker capacity.

I recommend: Study for the FINRA exam and other investment examinations at the Broker Training School. They also offer advisement services to help you decide which courses you need and which licenses will serve you best in various stages of your career. Visit the Stockbrokers Training School for resources to study for the required license exams in all of the securities trading series.

Add stock brokerage licenses and certifications with additional training

Add additional securities licenses by passing certain exams such as the Series 3 exam for selling futures and commodities. Look for training that includes sales and strategies training, how to write contracts and training for understanding risks.

I recommend: Go to Futures Knowledge for a variety of training courses that will prepare you for a career in discount trading. Get training to pass the Series 3 investment exam to get certified for futures and commodities trading. Get examinations and courses for study online for the Series 7 exam and other designations at Investopedia.

Find continuing education training at associations for discount brokerages

Look to your trade groups to find additional training in compliance issues and dispute resolution. Get credits for discount stock brokerage continuing education that you need to maintain your brokers' license through associations that provide members with training options.

I recommend: Get web-based training, certification courses and professional development training through the National Futures Association. Find a wide variety of training and certification courses offered through the Securities Industry and Financial Markets Association.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Include training on emerging software programs as you continue with your brokerage services training.

Investors and traders trade with discount brokers because their commissions are much less than full-service brokers. However, discount brokers don't provide investment advice, such as advising clients on what stocks to purchase. Traders and investors must conduct their own research, such as finding out the company's profits or earnings per share; they can obtain this information through online discount brokerage firms. Here are a few terms investors and traders need to understand when it comes to discount brokers.

Action Steps
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Discount brokers

Discount brokers offer lower commissions than full-service brokers. As previously stated, they usually buy and sell stocks without providing investment advice to clients. Discount brokers provide investment research information about companies.

I recommend: Investor Words gives an explanation of discount brokers.

Commissions

Commission is the fee that the broker charges clients for executing trades. Professional traders and investors usually prefer discount brokers because they charge lower and flat-rate commissions.

I recommend: The Sun Financial Diary not only talks about discount brokers, but compares the commissions they charge.

Full-service brokers

Full-service brokers provide services such as financial planning and investment research. They can also advise clients on what stocks to buy and sell. However, the client will usually make the final decision on what to buy or sell. In addition, full-service brokerage firms might charge a yearly maintenance fee.

I recommend: AOL Money & Finance provides in-depth information about why discount brokers are better than full service brokers.

Trading

Trading involves buying and selling securities. Discount brokers offer versatile trading, in that investors and traders can trade not just stocks, but options, commodities, bonds, and mutual funds. Investors and traders can also trade international securities through discount brokers.

I recommend: Visit Interactive Brokers to learn about the different securities investors and traders can trade.

Trading platform

Trading platform is software that discount brokers allow investors and traders to use to execute trades. The trading platform includes charts and real-time prices on companies. Investors and traders are able to see what the bids and asks are for securities. They can employ trading strategies, such as trailing stops.

I recommend: Go to Apex Futures to learn what its trading platform offers.

Discount brokerage account

Opening a discount brokerage account requires the investor or trader to fill out an online application. The person can also mail in the application. After it has been approved, then the person can deposit cash in the account and begin trading.

I recommend: Motley Fool provides good information about how to open an account with a discount broker. You will need to scroll down this page to get to the discount brokers section.