Assess Needs

• Ask yourself the following questions to help determine your needs: Are you going to be day trading, holding stocks long term or both? Will you only be investing in equities or would you like to invest in commodities, foreign currency, bonds, options and other derivatives? Will you be trading in cash or using margin? Will you conduct independent research or would you like your broker to provide you with these tools? Does the trading website offer IRA, money market or other types of savings accounts? These are all very basic questions you should answer before comparing online trading websites.
  
  

Full Service Versus Discount

• Another major choice is whether you will go with a full-service or discount broker. Full-service brokerages typically charge higher fees per trade but also come with much more customer support than discount brokerages. Full-service brokerages can be a good option for investors who wants little to no involvement with their investing strategy or the maintenance of their portfolio. Conversely, discount brokerages put the wheel in your hands and are able to offer lower commissions since you do the work.
  
  

Compare Prices

• Once you understand what types of instruments you will be investing in, you can begin your assessment by comparing trading commissions. Sites that charge higher commissions often come with additional research tools and support, but not always. If one company charges a higher price than another, look to see what additional benefits may justify this price. Also, see if there are discounts based on trading activity, which may make certain websites cheaper depending on your needs.
  
  

Brand Recognition

• While online trading websites are heavily regulated, you should default to a company with a long-standing history. This is a good sign the company will still be around when you want to get your money back.
  
  

Research

• While the above suggestions will get you to a good place to start, it is important to conduct your own thorough research. Investors have varying needs and finding what fits best for you is what makes the difference. There are many websites available that offer side-by-side comparisons of various trading websites; however, they can sometimes be outdated and do not always reflect current promotions or other pricing changes offered by these companies.