These brokers are usually small operations who use a clearing house for their trades.
The main question to ask these guys is whether they offer those very cheap commissions
when you make a limit trade. Usually you will find that they only offer these cheap
commissions on market orders. And you end up paying more then the difference in the
commission when the market order executes 5 cents higher than your limit order would
have.
David Horowitz once said these words
BE AWARE AND INFORMED AND DONT LET ANYONE RIP YOU OFF.
Sunday, May 25, 2008
Be aware of discount stock brokers offering cheap commissions
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