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