• Full service brokers: these brokers gather financial information about you in detail. He makes recommendations to you based on your financial condition.

• Discount or online brokers: they do not offer advice or make recommendations. You are on your own to determine which stocks to invest in. Choose this type of broker if you have adequate knowledge of the markets. Even in this case, you will be required to certify that you understand the risks associated with your investment.

        Before you can start trading on the market, you will have to open an account with your broker. There are several types of accounts that stockbrokers offer.

• Cash Account: it is the simplest form of brokerage account. When you sell a stock, the broker will deposit the proceeds in the account. This money can then be used to make a purchase. A discount broker will require you to put enough money in the account before you can begin trading. This is not necessarily the case with a full service broker.

• Margin Account: this account allows you to borrow up to half of the value of the stock from your broker. This type of account carries a risk. When the value of the stock falls below the money lent, you will have to deposit cash into the account

above the borrowed amount.

• Discretionary account: this type of account gives the broker authority to buy or sell without notifying you. It should never be used.