Categorized | Business

What to Look for in an Online Stock Trader

Working with an online stock broker can save you a whole lot of money and stress. If you’re new to stocks and other investment opportunities, then it’s essential you choose the right broker. The wrong broker will be way more hassle than it’s worth, cost you a lot of money, and frustrate you to no end. The selection process isn’t exactly hard, but you should take it very seriously. Let’s take a look:

Online Stock Trader

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Know All About Their Commissions

The first thing you should consider is commision. If the broker is offering you a rate of $100 or perhaps more, then don’t go there. Your profitable trades won’t be as successful and you’ll make a lot of losses – it’s a fact. Do not be tempted. I’d say go for $20-$35 – this is your best bet. A discount online broker may offer $10 commissions. To get the best online stock trading deals, you should bear in mind that your commission rate should reflect any trading volume increases.

Real Time Updates

In the stock market today, timing is everything. A great online broker will give you real time updates, so you can get everything spot on. Even if you won’t be using this side of things much, it’s always useful to have it available to you, just in case.

Opening Costs

How much money will they require to open your trading account? All online stock brokers will have a minimum balance requirement when you go to open your account. Many are $1000, some are $500, some are higher than both put together. It’s up to you if you’d like to continue adding money to it afterwards. Beware of especially low opening costs, as they may charge you even more if your funds drop below a certain level, called a ‘maintenance fee’.

Stocks and Mutual Funds

How many stocks and mutual funds do you think the online brokerage can access? The broker should be able to help you with any endeavours that you desire. What’s the point in having a stockbroker who won’t be able to help you do what you want? Take a look at these 4 smart places to invest your money, and work out whether your potential broker could help you. There are plenty of reviews online that can give you a good idea of this.

A Great Site

If you now have a shortlist of online stock traders, go on each of their sites and get a feel for how you will use them. This is essential if you see yourself trading most of your stocks and investments online. This is as important as all of the benefits they offer you! If a site is difficult to use, you won’t be happy no matter how great the supposed benefits are.

Now you know what to look for in an online stock trader, you can make an informed decision. These guidelines are of the utmost importance. Do your homework, and you’ll get a firm that will meet your needs down to the ground!

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