How to Compare Online Stock Trading Companies

Thirty years ago everyone needed a broker. Online stock trading companies didn't exist, and you had to rely on your brokerage for charts, graphs and updated investment analysis. Online stockbrokers changed the game. Now you create and track your own accounts. You can invest in stocks, options, mutual funds and exchange-traded funds, all online. You can also manage your IRA investments online. The challenge now is knowing which company to choose.

Instructions

1. Compare dedicated resources. Consider whether the companies have 24-hour phone service and whether you will have a designated broker. Try to look for deals that involve access to analyst research and alternative asset trading platforms.

2. Compare educational materials, charts, news and tools such as stock screens.

3. Compare communications. Is there a feature to alert you of stock trades by email or cell phone? This is a nice feature for intra-day traders. Will you receive all statements online?

4. Compare fees and commissions. Inquire about all trading fees, transfer fees and check-request fees. Some brokers have a tiered commission structure based on end-of-day balance or trading volume.

5. Compare based on asset scope. Some online stock trading companies trade only mutual funds or stocks. The larger, more reputable firms trade stock, mutual funds, options, ETFs, CDs, bonds and derivative products.

6. Compare ease of use and access. In-depth navigational tutorials are an important consideration no matter what your level of expertise.

References

• Compare Stock Brokers
• Five Top Online Stock Brokers

Resources

• Read this Article in Spanish