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6. What are discount brokers?

Pros and Cons of Using a Low-cost Broker

There are advantages and disadvantages of using discount brokers, so carefully think about whether it makes sense in your situation.

Pros

  • Low costs, especially transaction fees
  • More control over your portfolio
  • Easy to place orders

Cons

  • Have to pay extra to access additional services
  • You’re mostly on your own unless you pay extra
  • You may not have access to as many investment choices

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