Some of you may pass this with a condescending scoff. I'm new to this, so please understand. Why do brokers charge different fees if they all perform the same function of buying and selling securities. Doesn't a broker at Goldman Sachs have the same internet connection and access to execute the transaction? I understand with bonds that it's different, and the firm has inventories because bonds aren't that readily available. How does it work with stocks and other securities. Thanks!

There is no reason in hell for any investor with less than 10 million in the market to use any brokers other than discount brokers. A well connected Broker could in theory help you insider trade. Oops, that's illegal. A very smart broker could in theory help you beat the market but if mutual fund managers can't beat the market why would you expect your broker to be able to beat the market? Salomon Smith Barney steered my mom into Global Crossing after SSB knew that Global Crossing was a dog. Full service Brokers that also recieve money for financial services provided to corporations have conflicts of interests and can not be expected to give honest advice to small investors.

I trade with Scottrade and am very happy with Scottrade.