How to Compare Online Trading Options

Choosing an online trading service wisely will help keep you from breaking your bank.

The online brokerage industry is competitive. Shopping around will present you with many online trading services offering differing rates, tools and services. Comparing the various options from each company will help you choose a service that meets your particular needs.

Commissions

Explore each online broker for details about trading commissions. You may not be able to trade at the lowest rates unless you trade frequently each month or your account meets a specific balance requirement. In some cases, only certain types of securities can be traded at the lowest commission rates.

Account Fees

Search for a list of all fees that you may be charged for services such as opening an IRA, receiving trade confirmations or trading large amounts of shares. Certain online brokers may charge annual maintenance fees, penalize you for inactivity or charge you should your account balance fall below a specific amount. Also, be aware of fees for closing an account.

Tools

Compare features meant to make your trading experience simple and informative. Many services offer charts, reports and other tools to assist you in making decisions. Look for tutorials designed to help you navigate through the site and understand its features. Customer support features often include free telephone assistance, email, instant messaging and chat support.

References

• Investor Place: 5 Secrets Your Online Stock Broker Won't Tell You (First two paragraphs) (Online Broker Secret #1) (Online Broker Secret #2)
• Top Ten Reviews: Online Stock Trading Review (What to Look for in an Online Stockbroker -- Trading/Investment Tools - Ease of Use -Support/Customer Service)

Resources

• 2010 Broker Survey