How to Compare Online Brokerage Firms

Finding an online brokerage firm that fits your investment style is difficult.

Knowing how to compare brokers is an important part of finding the best brokerage firm for your needs.

Difficulty: Moderate

Instructions

1. Consider your money management style to compare online brokerage firms.
   
   Do you enjoy doing your own investing research? Then a discount online broker is an option. With lower transaction fees you'll have more freedom to move your investments. A full service brokerage firm is designed for the "set it and forget it" approach to investing. Many investors enjoy the peace of mind a full service online brokerage firm offers.

2. Compare online brokerage firms by reading financial publications.
   
   There is a wealth of information in financial magazines to help you evaluate the fees of online brokerage firms. It helps to be able to compare the premiums for transactions side by side.

3. Evaluate the offers for new account openings as well.
   
   Online brokerage firms are always offering sign up promotions. If you've had your eye on an online broker, see if there are offering a bonus for new applicants.