How to Choose Online Stock Trading Sites

There are many stock trading sites on the internet but which one is the best really depends on your situation. It is no longer easy to categorize online stock trading sites. The boundary between discount and premium brokers is not as clear as before. The differences in commission or functionality between the sites are so minor that it is hard to tell which one stands out. In order to choose an online stock trading broker, look for the following features:

Difficulty: Moderate

Instructions

Things You'll Need:

• Websites of Online Stock Trading Brokers

1. What kind of trader are you?
   First of all, you have to know yourself. How often do you trade? How long do you hold your stocks? A lower commission is important if you trade often. If your online stock trading activities happen only occasionally and you are a long term investor, high quality customer service will be more important to you.

2. Is there a minimum amount required to open or keep your online stock trading account active? What is the minimum amount you need to maintain in order to get free trading tools and enjoy low commissions?

3. What are the commissions and fees? Is the commission calculated based on the size of orders? Are there any hidden fees such as inactivity fees or cancellation fees when you close your online stock trading account?

4. Does your online stock trading broker give you any free tools, e.g. market research or education?

5. What interest rate does your online stock trading broker give you for the cash in the account? Can you get higher interest rates elsewhere?

6. Is your online stock trading account insured? And under what conditions?