Things You'll Need:
- An internet connection
- Money to invest in your online brokerage account
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Step 1
Evaluate the fee or commission structure of the online trading broker account. Fees will vary widely amount online brokers. Some will actually offer no fees if you meet a minimum account balance. Visit each broker's website and read the details of the fees or commissions.
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Step 2
Compare the choices of investment products that each broker offers. An online broker that is extensive will offer mutual funds, etfs, stocks, stock options, bonds, municipal bonds and CDs. Also, a good broker will also offer the ability to get in on Initial Public Offerings or IPO.
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Step 3
Analyze the trading tools that are offered by each online broker. Does the online investment broker offer email alerts for your holdings? Can you make trades over a blackberry or other mobile device? How fast are the transaction times? These are all important questions to ask and search on their websites.
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Step 4
Determine the level of customer service offered by each online investment company. You'll want to know if the company that you're interested in ranks high in customer service as evaluated by independent third parties such as high profile investment magazines like Smart Money and Forbes. Also, a simple internet search will yield good results on customer ratings and reviews.
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Step 5
Compare research tools offered by each brokerage. If you are choosing to manage your own investment account, you already know the value of good research tools. Make sure that the brokerage that you choose allows you to analyze each stock or bond in many different ways. Historical prices, dividend yields, technical charts, and moving averages can all be helpful when researching investments.
