Comparing Online Stock Market Trading Sites
The growing number of participants in the stock market has brought a large demand for online stock broker sites. Choosing the right one is very important, as online trading sites are the trader's gateway to the markets.
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Trading Costs
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Trading commissions are probably the most advertised facet of what different online stock brokers can offer to their clients. However, the method in which these fees are applied needs to be clarified. When a site advertises a $7 commission, are they referring to both "legs" of the trade? In other words, do they charge the commission when stocks are bought and then again when they are sold? This is usually the case, but it should be clarified.
Full Service Or Discount Brokers?
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Is the broker a full-service or a discount broker? A full-service broker is one that helps analyze stocks and assists in the decision-making process in addition to executing the stock order. Conversely, a discount broker simply executes the order, and they charge much lower commissions as a result.
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Trading Tools
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Another element to consider is what kinds of trading tools the site offers to clients. For instance, does it offer charting services? Stock charts indicate profitable price patterns that occur frequently. Does it offer market news such as earnings or federal reserve announcements? Being aware of vital news will alert traders when to stay out of certain stocks or industries.
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References
Resources
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