is it necessary to use any type of broker at all 
no law says that you must use some type of broker although flying solo is generally not a good idea if you re not very knowledgeable about the industry two types of plans allow you to invest directly on your own direct stock plans dsps and dividend reinvestment plans drips both involve dealing directly with the company you want to invest in there s no guarantee that these plans won t also charge fees and drips don t commonly provide for selling shares 6the bottom linediscount brokers carry out orders for less cost to the investor but they typically just execute orders for their clients they don t offer personal consultations or advice discount brokers can offer lower fees due to the lack of these services you can find a discount broker who will do as you instruct for less money than an advice oriented broker but this is only a viable option if you know exactly what you need and want 