This broker is merely jumping from a sinking ship to one that hasn’t sunk yet. The new ship has many leaks, and it may take a while for the people on the Titanic to wake up. Virtual Brokerage that stubbornly refuse to cross the bridge to an entirely new business model will die a slow and painful death. It’s one thing for brokers to let their own ship sink, but it’s quite another for those brokers to sell tickets to real estate agents with promises they can’t keep.
The most unfortunate part of the whole thing is that the brokers who think they are doing what is necessary to survive are just rearranging the chairs on the Titanic. Many of them really don’t know or understand how precarious their fate is. Many of them have a bad feeling, and they know there is something wrong with their business model. Like so many of the passengers on the Titanic who smiled just before the end and kept saying, “Don’t worry, everything will be fine,” traditional intermediaries continue to greet people with a smile and wait for the phone to ring. But the ship is tilting, and they are in danger. They just don’t know what to do.
This is the great dilemma of being stuck. It’s the classic inability to think outside the box. Traditional brokers and agents who have worked for many years in a traditional brokerage model have a hard time thinking in completely new ways. What makes this particularly difficult for so many is their discomfort with technology and the Internet. Some simply refuse to learn the technologies.
Low Cost Brokerages with Great Security
Security and protection are paramount, even with low cost brokerage services. Your account information should be protected with state-of-the-art encryption technology, whether you log into your account via the web, an Android app, an Apple app, a tablet, or any other device. 128-bit SSL encryption is a good thing to look for when choosing a brokerage solution.
There are also the types of investments you can make. Just because a broker is low cost doesn’t mean it has to focus on penny stocks. It’s good if there are more choices, such as bonds, options, mutual funds, options, and even foreign exchange for those interested in currency exchange. An added bonus is if the company offers insured accounts that are protected by organizations like the Securities Investor Protection Corporation (or SPIC).
Since these types of discount brokers operate primarily over the Internet, they don’t have to hire large sales forces to knock on doors. They simply rely on their low prices to attract customers, and don’t feel the need to charge you commissions for each purchase or sale. You can do it all through the user-friendly interface.
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