Picking a Discount Brokerage

Some tips if you’re trying to pick a discount brokerage:

* Don’t feel shy about opening accounts at a number of discounters. Even among the deepest discounters, commissions can vary significantly, depending on the configuration of a particular stock trade. You may as well get the cheapest price you can on every trade. Discount brokers are generally happy to quote commissions over the phone, unlike many other businesses.

* If you’ve used a full-service broker for years but now feel ready to do some investing on your own, do what many investors do: Keep your full-service account but also open an account with a discounter. Full-service brokers are aware that clients often use them for ideas and do at least a portion of the trading on those ideas at discounters.

* Always ask about discounts on discounts: Because the brokerage business is so competitive, many brokerages--full-service and discounters--will cut quoted commission rates for good customers who request a better deal. You can’t hurt yourself by asking.

* If you’re a serious trader, the fall-1991 Mercer Inc. survey of the lowest-priced discount brokerages in the nation may be worth the $34.95 price. Call 800-582-9854 for more information.

* If you know a discount firm’s name, but don’t know how to reach it, check with directory information for toll-free numbers. Virtually all discounters have such “800” numbers listed. Call 800-555-1212.