What type of brokerage do I need if I take BetterTrades classes?

The type of brokerage you need is based on your personal preferences. A full-service brokerage assigns a broker to you who will advise and assist you with your trades. (A professional broker becomes certified by passing tests about their industry in order to assist investors.) Other services offered are research, analysis, tax help, and financial planning for college or retirement.

However, this full-service comes at full price. The per trades amount is steep, and the full-service brokerage may also charge an annual account maintenance fee (with the amount based on a percentage of your account value). For some, this price is affordable and worth it, but those with more modest funds and a can-do attitude should look into discount brokerages.

Discount brokerages have risen in popularity as traders have become more knowledgeable about the Internet and investing. These brokerages can afford to charge less for trading services because they operate online and don't need to support a network of walk-in offices. Some things you'll want to consider when evaluating a discount brokerage are:

• Level of customer service. Do they even have customer service? Are they available 24/7?
• Available tools, such as software or reports. Are the tools easy to use and easy to access? Does their software work with your at-home accounting software?

Located somewhere in between these two types of brokerages are mid-priced brokerages, which provide articles or tutorials on their web site and perhaps a free seminar or two. These types of brokerages may have walk-in offices as well as an online presence.

Whatever type of brokerage firm you decide to work with, make sure you understand ahead of time what trades you can and cannot make through the brokerage, as well as the minimum balance required to trade. These are referred to as the "house rules." One more thing to check before you sign up - that any accounts you have with the brokerage are insured by the Securities Investor Protection Corporation (SIPC).