| Log on to the internet and you will be confounded | | | | example, it may be clearly mentioned that for |
| by the sheer number of stock brokers listed, with | | | | trades above, say, 5,000 shares you will be |
| each one making proposals and offers that are | | | | charged regular commission besides an additional |
| more attractive than the other. Flooded with such | | | | cost of $ 0.005 per share above 5,000 shares. |
| a vast array of choices, what should be the | | | | Similarly there may be additional fees for stocks |
| criteria for finding the right stock broker? This | | | | priced at less than one dollar. |
| becomes all the more important since you are | | | | Clarity about Investment Conditions |
| investing your hard earned money in stock | | | | Consider a situation when you require funds to |
| trading. | | | | purchase stocks through automatic investment |
| Compare Brokerage | | | | plans. |
| The first and foremost criterion is the brokerage. | | | | Your funds in such cases should be available in |
| You may not consider the brokerage an | | | | your account by 1.00 PM on the trading day prior |
| important factor, if you have to invest once in | | | | to the scheduled investment day, failing which |
| while, or, if you are a long-term investor. By its | | | | your automatic investment plan will not work. |
| very nature, the business of stock trading | | | | Certain brokers offer several convenient funding |
| involves selling and buying over shorter spans of | | | | options to meet this cut-off time including |
| time, it would, therefore, make bad business | | | | one-time and recurring ACH electronic transfers, |
| sense to ignore the brokerage factor while trying | | | | check deposits, and wire transfers. |
| to find the right stock broker. Added over a | | | | Other Attractive Benefits-Fractional Shares |
| period of time, higher brokerage may cut into | | | | While trying to find a stock broker, keep in mind |
| your earnings or add to your losses. | | | | that some offer attractive investment benefits to |
| Brokerage Plans | | | | their members. In most cases you are bound to |
| Do an extensive comparison-shopping for | | | | make a certain minimum investment. Normally, for |
| brokerages. There may be traps as well. While a | | | | example, you are expected to buy at least one |
| broker may offer some discounts on one type of | | | | hundred shares of a stock, the reason being that |
| trading, he may overcharge in other types. | | | | all stocks trade in units of 100 shares. If you |
| Moreover, stock brokers quite often offer | | | | cannot buy 100 shares in one go, you may be |
| different brokerage plans on various investment | | | | charged very high trade fees. The accounts of |
| packages, trade options and other services. The | | | | those investors who cannot meet the stringent |
| names of the options or plans may differ from | | | | condition of minimum purchase are locked out of |
| broker to broker, but the substance remains | | | | the stock market. |
| unchanged. The investment options or plans may | | | | There are, however, certain brokers who solve |
| include Automatic Investments, Real-time market | | | | the problem of such investors who cannot afford |
| trades, Real-time Limit trades, and so on. Again | | | | to spend or do not wish to spend so much |
| they may offer various payment plans on each | | | | money by offering fractional shares. Fractional |
| of these options. While some brokers accept a | | | | share, as the name suggests, is just a fraction of |
| minimum account balance of $ 2,500 only, others | | | | a share. You need not, therefore, buy one |
| may insist on higher amounts. Some brokers do | | | | hundred shares or even one share. You can buy |
| not charge anything on funds transfers; neither do | | | | just a fraction of a share and you can invest |
| they charge inactivity fees. The subscription | | | | absolutely any dollar amount with no minimums or |
| charges may also vary. | | | | buy any number of shares of a stock-whether a |
| Service Charges | | | | thousand shares or one-tenth of a share. |
| Stock brokers also charge you fees on their | | | | All these benefits can be availed only if you do a |
| services such as Transfer Funds fees, Inactivity | | | | thorough and intensive comparison shopping for |
| fees, subscription fees, minimum account charges | | | | the right stockbroker. You need to study the |
| and so on. As an intelligent stock market investor, | | | | website of each stockbroker in detail and ask |
| you should scan the brokerage and other service | | | | questions so that you do not repent later on. |
| charges of each stockbroker closely before finally | | | | Importance of Research in Stock Trading |
| opening your account with anyone. | | | | If you are a novice in stock trading, instead of |
| Beware of Hidden Charges | | | | venturing on your own, it is better if you seek |
| An honest stockbroker does not keep his | | | | the advice of your stockbroker at the initial |
| prospective investors in the dark about any | | | | stages of your trading. Based on in-depth |
| aspect of his fees and charges. He explains | | | | research that your stockbroker carries out on the |
| everything clearly with examples and | | | | financial performance of the companies, he will be |
| mathematical calculations so as to alleviate any | | | | able to guide you on your investment portfolio so |
| possibility of doubts or misunderstanding. For | | | | that you can maximize your profits. |