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Stock Brokers Continued…
Kira Lee The level of control stock brokers exercise over investments varies from client to client. Some clients turn over complete control of their portfolio to a trusted stock broker, giving him or her free rein to make choices as seen fit and requiring only periodic updates on the portfolio's status or permission when making large decisions. Other clients manage their portfolios themselves or leave that to an investment manager and require only occasional advice or the actual stock transactions from a stock broker. Changes to Stock Brokering services With the advent of the Internet, the growing popularity of online activities, and the ubiquitous nature web technology, online stock trading has become more and more popular over the past few years. People find the convenience of managing their portfolio from a computer at home or work to be vastly preferable to having to pick up the phone and call up a stock brokerage firm, and may also appreciate the near-real-time ability to see exactly how much their portfolio is worth and how particular choices are performing. [AD] In response to the growing trend, many stock brokerage firms now offer online services. Although it is possible for a person to buy and sell stock from a website, the actual transaction must still be done by a dedicated stock broker on a trading floor. This means that requested sales or purchases of stocks are not actually conducted with the click of a mouse – rather, the request is sent to a stock broker who does his or her best to fulfill the terms of that order. This may come as a surprise for some who believed that they were actually trading stock, but the process is actually very similar to the traditional orders placed over the phone, simply replacing the phone call for an online transaction instead. Fees charged by stock brokers Most stock brokers, especially online ones, now charge a fee for each transaction. This can vary depending on the brokerage firm but is usually nominal, since market forces have introduced a great deal of competition in the area. More involved stock brokers may charge by hourly labor, or by a percentage of the value of the portfolio. The fee and fee structure of a stock broker will vary greatly and must be carefully discussed before any contracts are signed in order to avoid later conflicts. :FALSE
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