There are both discount stock brokers and full-service stock brokers who work online. Discount brokers offer very few services and don't pay much attention to each client. Usually, they only offer fast order execution at low costs. Don't expect them to help you too much, because you're only paying for the execution.
If you need advice about which stocks to buy or when to buy them, you should work with a full-service broker who gives you the personal attention you need. He will talk to you about trading strategies, help you make plans for investments, and do the trading for you. A stock broker who has been working in the market for years or even decades can teach you a lot.
Before about 30 years ago, only full-service brokers existed. Their high fees meant that only wealthy stock investors could use their services. Before the first discount brokers came along, these brokers were in charge of the market.
Many investors have always done their own research, knew exactly what they wanted to buy or sell, and didn't want to pay the high fees of a full-service stock broker. The discount brokers quickly gained a lot of attention. When computers got better and the Internet became popular, online discount brokers took the market by storm.
In the beginning, there were some technical problems that meant you still had to call your broker quite often. However, trading on the Internet is now very fast, reliable, and cheap. The most popular online stock brokers have software that is simple and easy to use. Some brokers offer extra help, like help with the order execution over the phone or access to detailed research materials, if you ask for it and pay extra.
A third group of discount brokers has found a way to help private traders who trade a lot (called "day traders") or institutional traders who trade a lot. These so-called "direct access brokers" offer advanced trading platforms where the trader can choose from dozens of order routing ways and order types just to save a few milliseconds or get a better price than the others. For low monthly fees, the software also offers real-time quotes and charts with technical analysis.
There will always be people who want cheap brokers, so online discount stock brokers will be around for a long time. Today, investors can find a lot of useful information on the Internet. Full-service brokers are only used by investors who don't have time to do their own research or follow the quotes.
