How to Find The Best Online Stock Broker

Finding the best online stock broker or the best discount stock broker for you isn't the easiest thing in the world, but in the long run it is well worth it. Saving money over the long run and getting all the key research information you need to make your stock picks is invaluable.

Difficulty: Moderate

Instructions

Things You'll Need:

• Understanding of your investment knowledge
• Online stock broker ratings

1. The first and most important step of all is understanding your knowledge of investments and the stock market overall and how that relates to what kind of broker you need. You need to understand how important it will be that you have or don't have someone to talk to about your investment decisions. You also need to know how extensive the research you will get needs to be. Consider your needs thoroughly.

2. The second thing you should do is take a close look at online stock broker ratings and online stock broker reviews. Find as many opinions as necessary and consider all of them equally. Note the explanation that people give as to why that brokerage is either one of the best or one to avoid.

3. 
    
   Good customer service is very important

   Look for top ranked customer service at all times. Even if you are interested in getting the cheapest stock trades possible, you still deserve to receive terrific customer service. Look through the online stock broker ratings for customer service reviews. A negative customer service experience is a huge negative on the company.

4. 
    
   Are there hidden fees?

   Are there hidden fees associated with having your account there? Some brokerages have inactivity fees or annual fees that can really eat you up. I highly suggest reading everything on their site about the fees and even calling and asking about whether there are any other fees you need to know about before picking a certain brokerage.

5. 
    
   Save money by finding cheap stock trades online

   Look for the brokerage that has the cheapest stock trades online that also offers good research and quality customer service. There are so many options out there now that you can be very selective in searching for an online stock brokerage, but you must look for ways to save money while still being with a top-notch company.

Tips & Warnings

• Consider how often you will need to be trading. If you a day trader you should put a lot of emphasis on transaction fees, but if you are a long-term investor it is a little less important.
• Find a site that has a good online brokerage comparison chart that breaks down the positives and negatives of each.
• Don't make a quick decision on something this important.
• Remember not to assume that there are no hidden fees. This can be very dangerous.

Resources

• http://www.stocktradingtogo.com/2007/05/31/5-top-online-stock-brokers/
• http://www.smartmoney.com/investing/economy/smartmoneys-annual-broker-survey-23119/

[RachelB]

on 3/27/2009 This is a very helpful article on how to find the best online stock broker. It's a complicated topic and you break it down well.