How To Choose The Best Online Stock Broker
Many Brokers, Few Good Ones
Online brokers have an important role to play when you open an online trading account. Each broker can offer different services and features and you must research all the online brokers to find the best broker to meet your needs.
Brokerage rates are the rate at which you are charged for buying and/or selling through your online account. These rates are usually charged based on a sliding scale. The more units you purchase in a single transaction, the less the “cost per unit” you will pay. The exact sliding scale can vary and may sometimes be negotiable for larger purchases.
Compare each broker and read the fine print within contracts. Pick the one that best meets your buying and selling style.Account fees Look for hidden fees in account contracts within the terms and conditions. I know of one broker who requires an extra $10 to transfer money out of an account “quickly” as against withdrawing money normally. Hardly a fair fee, we believe. All fees should be listed in the terms and conditions listed in opening an account.
Online services can go down during hours of service. Interruptions to broadband services, power outages and computer problems can stop you from accessing information you need at critical points. This is why you must have phone access to your online broker. Do not even consider using an online broker if they do not provide phone access.
Access to your money
We prefer having instant access to our money even though it is held in a cash account by the broker. Most brokers will have a cash account facility that is linked to your trading account. Some accounts are linked to a Credit Card account, which means they can access that money anytime through any ATM or make purchases as they would normally using a Credit Card. Don’t be misled into thinking you must only have a separate cash holding account with the online broker. There are lots of options open to you as a client and good online brokers will provide several options for your cash holding account.
Seek out those brokers that give you extra incentives to open an account with them. Some offer a limited free brokerage period. Others will offer free reports on the markets you are interested in. These bonus offers can help you getting you account established and setup a profitable trading account. For more information on finding the best online stock broker feel free to visit our website.
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