| Selecting an online stock broker is a very | | | | trades, broker assisted trades, stock |
| important task. Your online broker will | | | | options, ETFs, margin accounts, etc. Again, |
| execute your investment trades, store your | | | | do lots of research to figure out all the |
| personal information, maintain your balances, | | | | features you need in a broker. |
| etc. With all the different online brokers | | | | |
| competing for your business, you need to | | | | Product selection: When choosing a broker, |
| compare multiple brokers in order to choose | | | | most people think about buying stocks. |
| the right one. | | | | Remember: there are tons of investment |
| | | | vehicles available to investors because of |
| Here are a few factors to consider: | | | | technological advancements and the internet. |
| | | | This includes CDs, municipal bonds, ETFs, |
| Conduct Research: Find out as much | | | | futures, options, funds, and commodities. |
| information as possible about the broker. Ask | | | | Many brokers offer add-on services, such as |
| your friends who they bank with or conduct a | | | | checking accounts, money market funds, and |
| simple Google search to find reviews and | | | | credit cards. |
| comparisons about online stock brokers. | | | | |
| | | | Site performance: A reliable broker provides |
| Discount vs. Full Service: It is better to | | | | 100% site uptime. Make sure your broker's |
| start with a full-service broker for novice | | | | site loads fast and doesn't lag during |
| investors who wish to develop confidence and | | | | trading hours. |
| knowledge of the markets. As you get familiar | | | | |
| with the process, use a discount broker to | | | | Customer service: Customer service is crucial |
| cut costs and invest independently. | | | | to your investment success. Test the broker's |
| | | | customer service before opening an account. |
| Minimum Deposit Amount: Find out the minimum | | | | Call the company's service center and ask |
| deposit the firm requires for opening an | | | | some questions and take notice of the waiting |
| account. Some firms have high minimum | | | | period. Most brokers answer their customer's |
| balances, as much as $2,000 to start. Some | | | | calls fairly quickly, but you should double |
| discount brokers have no minimum deposit at | | | | check anyway. |
| all. A good broker will allow you to open an | | | | |
| account with very little money and keep it | | | | Ultimately, choosing the right online stock |
| open as long as you like. | | | | broker takes a bit of research and digging, |
| | | | but anyone can find the perfect broker within |
| Trading Fees: Price doesn't always equal | | | | a couple hours. Weigh all the broker's |
| quality. Don't open an account with the | | | | features and benefits before opening an |
| broker just because it offers the lowest | | | | account. By then, you will gather enough |
| commission around. You also have to assess | | | | information to make a wonderful decision with |
| whether the broker offers a wide range of | | | | your money. |