How to Compare Online Trading Accounts

If you'd like to buy and sell stocks online, you'll need online stock trading accounts. There are many companies that are offering this service and it can be difficult to decide which one is right for you. Here are some tips that should help when comparing your different options.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Computer & Internet

1. 
    
   Check the online commission fees

   One of the first things that you'll want to research is what the commission fees are for your trades. Know that you are charged a commission fee two times - once when you buy stock and again when you sell it. So, look at the online stock trading brokerages that you are considering using and check what each of them charges you per trade.

2. You'll also want to compare what each brokerage is requiring as a minimum initial deposit. If you don't have a lot of cash to invest using an online trading account, the amount you'll need to start your account may be the biggest factor in your decision. The minimum initial deposit can run from $500 at Scottrade to many thousands of dollars.

3. 
    
   What additional fees will you have to pay?

   You will also want to check what other fees you'll have to pay with each online brokerage that you are considering. Some charge maintenance fees, some require a minimum account balance, and some have tiered commission schedules. All of this information is important to know when making your decision.

4. 
    
   Can you buy & Sell more than Stocks?

   Check what you have the ability to trade using each of the online trading accounts that you are considering. All of them offer stock trading, but what if you are interested in other forms of investments like US Treasuries, municipal bonds, CD's, 529 plans, etc?

5. 
    
   What additional tools do you get?

   Last, compare the trading and investment tools that each online trading account offers their users. Do they have calculators, streaming tickers, alerts, trade time guarantees, etc? These things may not be the most important to you, but they are worth looking into because the tools provided can help you to become more knowledgeable when you trade.

Tips & Warnings

• Take the time to research different companies before choosing one!

[johnrapp]

on 5/19/2009 learning how to compare online trading accounts is something i think we all think about doing. you help us do it. 5 stars!

[sonni57]

on 4/13/2009 Thanks for the good article on how to compare online trading accounts.

[traderjoe]

on 4/7/2009 Check it out - when I signed up for Scottrade, I received ReferAll code UJDY2985 to receive three free trades. Use this code when you sign up for a new account and receive three free trades!

[kp3028]

on 3/28/2009 Simple do the research. Find out what is best for you. *5

[tachic]

on 3/8/2009 These are great tips- thanks