Get the Best Online Broker
Millions of average folks are successfully trading online. All you need
is a computer, a modem, and access to the World Wide Web. You simply open an account with the brokerage of
your choice by filling out some paperwork and mailing in a check. Then click over to its website, log on via a password, and
proceed to check the status of your account or place a trade order.
What should you look for when shopping for a broker? That depends on what kind of investor you are, but here are 10 aspects
to investigate:
1. Trading commissions: How much will it cost to buy stocks or other securities you'll want in your
portfolio?
2. Other fees: Check for annual maintenance fees, or inactivity fees if you're not a frequent trader.
3. Minimum initial deposit: If you don't have a lot of investable assets, look for a broker with low minimums.
4. Customer service: Check out the reputation of the broker's customer service (you can begin at our Discount Broker discussion board).
5. Traditional banking services: A brokerage account can often double as a checking account.
6. Research: Does the broker provide objective, independent security analysis?
7. Mutual funds: If you're interested in funds, make sure your broker has access to high-quality, low-cost
fund families.
8. Investment product selection: Will you want certificates of deposit? Options? Bonds?
9. Other methods of getting your trades executed: If your computer is down -- or you're away from home
-- can you make a trade via phone?
10. Other freebies and perks: Many brokers offer special
deals to new customers, which may be the final bonus that tips the scales in its favor.
Want to learn more? Then visit our Broker Center.