How to Compare Discount Brokers

There are a lot of online discount brokers you can choose from these days. How do you choose the ones that fit your needs best? This article will help you compare discount brokers and help you choose the right one for you.

Difficulty: Moderately Challenging

Instructions

Instructions On Comparing Discount Brokers

1. Compare the commission schedule of each discount brokers. Many have very low commission rates these but their level of service may vary widely.

2. Decide how much research you will need your broker to provide. You may not need any research tools but many discount brokers provide a lot of of research information for free and even more for a fee.

3. Determine which investment products you will be buying or trading. See which discount broker offers the best selection of products that fit you. For example if you invest in mutual funds make sure the discount broker you use has a wide selection of mutual fund families that you can invest in.

4. Check out the customer service of the discount brokers you are considering. Do they respond to email or offer online chat? Is the phone support helpful and responsive?

5. Consider if you will need banking services with your brokerage account. Some discount brokers offer credit cards, ATM cards, and interest bearing accounts for cash balances. Decide if you will need this service.

Tips & Warnings

• Don't only consider commission fees when deciding on a discount broker. Most discount broker commissions are quite low. Make sure it is not a promotional low rate or if you have to trade a lot to qualify for the low commission. Also consider the products and customer service of a discount broker before you decide.