How to Compare Online Stock Trading Sites

Trying to find the right online brokerage can be incredibly confusing if you don't know exactly what to look for. There are many online trading sites vying for your business.

Types of Investments

Some online trading sites offer only stock trading while others offer a whole smorgasbord of investment options. Look for a broker that offers different types of investment options that will meet all of your trading needs. The best online trading sites offer stocks, options, exchange-traded funds and bonds.

Compare Transaction Costs

Look for online trading sites that have the lowest transaction costs. Transaction costs can vary greatly depending upon the broker. Compare the trading commissions for buying and selling stocks. Some brokers have fees as low as $3 or $4 dollars while others charge over $10 per trade.

Check the Customer Service

Customer service is important. You never know when you will need to contact your broker because a trade did not process correctly or you need help with a transaction. Pick a trading site that has a rapid response time to emails and phone calls.

Check the Research Tools

Make sure that the site offers trading strategies, research tools and analyst reports. All of these tools should be offered free of charge by your broker.

References

• What To Look For In A Broker