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Some examples of deep-discount (or online) brokerage firms are E*Trade, Ameritrade, and Datek. With the immense popularity of online trading most every brokerage firm has taken steps to also offer discount brokerage services online. So for example if you already have an account with Schwab, you can also use their online service to trade cheaper without having to switch to a fully online brokerage firm.

So which brokerage type should you use? That depends on your taste. While I sometimes use a full service broker, I mainly use an online broker and I have experienced some of the drawbacks that I mentioned above. But I continue to believe in the concept of online investing. I don't need a lot of advice for my trading decisions, and perhaps my background as a software engineer has made it easier for me to adapt to this type of trading service. Most daytraders also use online brokers - considering their frequency of trading, they would have to pay a hefty sum in commissions otherwise. If you have a distrust of computers or would like personal service, other types of brokerage firms may fit the bill. Also if low-priced commissions may tempt you to trade more often than you would like, a full-service broker maybe just the right cure for that. There is certainly no shortage of brokerage firms to choose from and they are all hungry for your business. Just be careful whom you choose, as occasional fraud exists in the brokerage industry.

It is also noteworthy to mention that due to recent changes in banking and securities laws, many financial institutions can now offer a wide variety of financial services. Sort of a one-stop shop for all your financial needs. They may be able to offer you banking, investment, and insurance services from one source. Many people like this option as it allows them to access and manage all their finances using a uniform access method and they can readily transfer funds from one account to another. …