How to Review Stock Broker Companies
Having the ability or the knowledge to compare online stockbrokers will often play a big part in your effectiveness as a trader.
In this article we are going to highlight 5 things that you should factor in your decision when choosing an online stock company.
1) Account minimums, this is one of the first things you should be aware of before signing with any company, remember to read the fine print.
All too often you will hear of somebody complaining that they are not getting what they paid for when it is simply a matter that they didn't read and understand the terms and conditions.
For example you might be given an introductory offer of £2 a trade, but when you go and trade you find your order has been charged $30 because you didn't have the account minimums.
Any trader worth their salt will have at least $2000 deposited in their accounts allowing them to make best use of their strategies and all the tools and services that will be provided.
Always look for a flat fee commission.
2) Hidden fees, this is a big one and can result in losing out on hundreds if not thousands of dollars.
Be aware of any maintenance fees on imbalances or even if your account has remained inactive for 30 days.
A majority of online brokers nowadays have gotten rid of all the hidden fees but I have previously been stung with something as simple as transferring money to my cash accounts.
3) Customer service whether it be by phone or e-mail, needs to be quick and effective after all you don't want to sit on the phone for two hours waiting for someone to answer a simple question.
At the same time you don't want to send an e-mail with an important question and have to wait a day or two later for the reply.
You might find that you need to rely on customer service or you might not, but it comes down to the age old principle its better to have it and not need it, than to need it and not have it.
4) Commissions, Knowing what your online broker is going to charge you for stock is something most people would think is pretty important.
A majority of investors choose to stick with flat rate trading however; you will need to ensure this as some companies the fee will change based on the size of your order or what type of stock you are investing in.
5) Tools can make all the difference during trading and can make your life a lot easier.
A good brokerage company will also have a wide variety of tools allowing you to make the best informed decision that you can.
Some of these tools can be live music feeds, level2 quotes, real time streaming and what the last sale stickers were.
There are a variety of other tools and resources that should be available to you.
Without tools you will lose your effectiveness to bid efficiently.
Hope this article has helped you gain a little bit of insight into what you need to look for, happy trading and good luck in finding the right brokerage company for you.
In this article we are going to highlight 5 things that you should factor in your decision when choosing an online stock company.
1) Account minimums, this is one of the first things you should be aware of before signing with any company, remember to read the fine print.
All too often you will hear of somebody complaining that they are not getting what they paid for when it is simply a matter that they didn't read and understand the terms and conditions.
For example you might be given an introductory offer of £2 a trade, but when you go and trade you find your order has been charged $30 because you didn't have the account minimums.
Any trader worth their salt will have at least $2000 deposited in their accounts allowing them to make best use of their strategies and all the tools and services that will be provided.
Always look for a flat fee commission.
2) Hidden fees, this is a big one and can result in losing out on hundreds if not thousands of dollars.
Be aware of any maintenance fees on imbalances or even if your account has remained inactive for 30 days.
A majority of online brokers nowadays have gotten rid of all the hidden fees but I have previously been stung with something as simple as transferring money to my cash accounts.
3) Customer service whether it be by phone or e-mail, needs to be quick and effective after all you don't want to sit on the phone for two hours waiting for someone to answer a simple question.
At the same time you don't want to send an e-mail with an important question and have to wait a day or two later for the reply.
You might find that you need to rely on customer service or you might not, but it comes down to the age old principle its better to have it and not need it, than to need it and not have it.
4) Commissions, Knowing what your online broker is going to charge you for stock is something most people would think is pretty important.
A majority of investors choose to stick with flat rate trading however; you will need to ensure this as some companies the fee will change based on the size of your order or what type of stock you are investing in.
5) Tools can make all the difference during trading and can make your life a lot easier.
A good brokerage company will also have a wide variety of tools allowing you to make the best informed decision that you can.
Some of these tools can be live music feeds, level2 quotes, real time streaming and what the last sale stickers were.
There are a variety of other tools and resources that should be available to you.
Without tools you will lose your effectiveness to bid efficiently.
Hope this article has helped you gain a little bit of insight into what you need to look for, happy trading and good luck in finding the right brokerage company for you.
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