Choosing the Perfect Online Broker the Easy Way - Money Soldiers
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Choosing the Perfect Online Broker the Easy Way

You may have pictured yourself searching for a great online broker as Frodo sought out the One Ring.  An almost impossible, trying journey with many trials and tribulations along the way.  In some cases it can be like this.  However, this post is going to teach you how to do it the easy way.  All it takes is a little planning to begin with.  Let’s get started:

 

Know What You Want to Do

This should go without saying, but it helps if you know exactly what you want to do with your stocks.  Sell them?  Hold them?  Assess how much you care about taking risks and what you’d like to achieve from investing.

 

Sweetening the Deal

Bear in mind that you should never select an online brokerage simply because of the deal sweeteners they offer you.  However, they can usually help you to reach a decision if you’re torn between two.  They might waive fees for a certain time period, for example.

Choosing the Perfect Online Broker the Easy Way Choosing the Perfect Online Broker the Easy Way

88x31 Choosing the Perfect Online Broker the Easy Way
Brokerage Firm by Simon Cunningham, on Flickr.  This work is licensed under a Creative Commons Attribution 4.0 International License.

 

Find Out About Interest on Idle Funds

All portfolios tend to have some idle cash.  What kind of return will a brokerage offer on this?  It’s important you find out.  It’s rare that a brokerage doesn’t offer a return on it, so you’ll need to find out why they don’t.  In some cases, they might be pulling a fast one and keeping your interest for themselves.  Be aware of this.

 

Check Out Their Customer Service

You really can’t put a price on customer service or its importance.  Before selecting the brokerage you definitely want to work with, do a test run of their customer service first.  Some discount brokers have such low prices because they don’t have much of a customer service team at all.  Make sure this brokerage offers what you need.

 

Check Out the Startup Price

To start up you may have to invest hundreds or thousands, depending on who you decide to go with.

 

Read Reviews

If you check out some reviews now, you’ll be able to learn a lot more about what each brokerage can offer you.  Weigh up the pros and cons of each to work out which is the most suitable service for you.

 

Commission for the Brokers

Price is probably the most important thing when searching for your online broker.  The commission could be anywhere from $10 to $40, but remember this; you get what you pay for.  The price will usually give you an idea of the level of service you’re going to receive.

 

The Speed of the Site

The speed of the site is a very important aspect.  Although you probably won’t need the kind of service where each second is crucial, there will be times when website speed can either give you a win or a lose.  Visit the site at different times of day to see how it loads up, especially at peak times.

 

With the above pointers, you’ll end up with the perfect online broker for you.  This post should give you an idea of other personal investment options you could try.  Thanks for reading!

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Amos - October 6, 2014

Thanks for the great list. Sometimes its hard to identify a trustworthy online brokers.

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Nick | Millionaires Giving Money - October 6, 2014

I have a optionsxpress broker account and was able to negotiate a 50% discount on trading costs just by asking on Live Help. Great guide by the way, very useful for newbies trying to choose a broker account.

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