It's man versus machine

Once you needed to be a client of a stockbroker to buy or sell shares, either by telephone or in a meeting in a cosy room in their offices. Now it is possible to do everything online without speaking to anyone.
Whether you choose to invest via the internet or deal with someone personally probably will depend on whether you are considering a one-off transaction or a bigger foray into the investment world.
It will also depend on how comfortable you are making your own financial decisions, your experience with the internet and whether you are happy to trust someone else.
What's what
If it is a one-off share sale, the quickest option may be to walk into a broker's office and present your shareholder registration number and the deal could be done in minutes. Some online brokers allow one-off transactions. You generally need to open an account with the broker and have the money ready to go.
If you intend buying or selling in the future it may be worth becoming a client of an online broker, which will require some form filling, even for the online option.
The online trading is dominated by four brokers. Market research company AC Neilsen says CommSec, E*Trade, Westpac Broking and National OnLine Trading collectively look after about two-thirds of online traders.
For full-service brokers, the Yellow Pages and the ASX website list all the big names including ABN AMRO Morgans, Bell Potter Securities and Macquarie Equities. Some brokers will take "walk-ins" but be prepared to answer a broader range of questions - it is a legal requirement that if they are going to give advice they "know their client".
Two websites have comparisons of online broker services including the fees charged: http://www.infochoice.com.au or http://www.compareshares.com.au.
The Australian Securities Exchange provides a list of brokers and questions to ask: http://www.asx.com.au.
Full service
Full service describes those stockbrokers who advise on what to buy and sell, provide in-depth research on companies and give clients access to initial public offerings. They are the conventional brokers that have been around for a lot longer than the internet. Some brokers will give financial advice beyond shares and take a holistic approach to wealth creation. Other brokers will provide limited, execution-only service and some still do discount broking over the phone.
Simon Bond, a broker with ABN AMRO Morgans - a full-service broker only - says the internet has changed the broking game for everyone and given a new meaning to advice brokers as well as online broking services.

It has helped people learn about investing but also muddied the waters, particularly in times of uncertainty and when the flow of information is so enormous.
"We spend a lot of time saving clients from themselves," Bond says. "With the internet has come a lot of self-education and an extraordinary level of sophistication but a screen cannot tell them what to do when they don't know themselves.
"We focus on helping people accumulate a portfolio of companies that they would add to in times of a downturn rather than just sell because they lost sight of their goals."
Bond says brokers who provide advice have become "human browsers"; knowing when a one-page summation would do instead of a 100-page report and sorting some of the "hype from the hope" when it comes to new floats.
It is industry standard for brokers to charge either a flat fee or a percent of the value of the trade for higher amounts, starting at 0.1 per cent.
Some brokers make research available and provide a regular newsletter with buy and sell recommendations; others will charge for this.
Take it to the net
Increasingly, investors are becoming more comfortable with buying and selling shares over the internet. Depending on the level of your activity, this can definitely be cheaper.
If you are new to both the internet and the stockmarket, then the information and service provided online will be critical. The ability to make telephone queries may be a valuable addition.
Denis Orrock, the general manager of online financial information service Infochoice, says people should first decide what features are most important to them.
"You may consider that research tools and services are not necessary, in which case you'll be heavily influenced by those offering the cheapest brokerage," he says. "On the other hand, you may feel that online tools, live market data and research services will save you time and money."
Active traders also will be influenced by the brokerage rates and should look for "frequent trader" discounts. Other important factors might be the speed of execution, trading tools such as conditional orders as well as the range of products that can be traded online.
Matt Comyn, general manager of CommSec, says the priority areas for newcomers and experienced investors alike are: ease of use, value for money, security, speed of transaction and service.
CASE STUDY
When Louise Bedford started trading shares she had no choice but to use a full-service stockbroker.
She now trades equities and a derivative product, contracts for difference, for a living and teaches others through http://www.tradingsecrets.com.au.
The things she looks for in an online broker are the ability to trade different instruments from one platform; an easy-to-use system; clear messages if she has done something wrong and how to overcome it; and a helpline so that if she can't get through on the computer she can pick up the phone and speak to someone.