How to Compare Online Stock Trades
Stock trading online is an inexpensive way to quickly buy and sell securities without the necessity of working through a certified broker. When comparing trades it's important to compare the whole trading experience, not just the fees involved. Transactions made online are nearly instantaneous, with meticulous records kept by most trading service providers. However, not all trades are equal, and knowing how to compare them can save you both money and frustration.
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Instructions
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Locate a variety of online stock trading firms. Find firms through reviews posted at business websites such as Yahoo Business, The Motley Fool, and MSN Money.
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Log onto the trading firm's website and gather as much comparable information as you can find available. Get the primary trading charges, the fees applicable with each buy or sell order tendered. Find out if there is a minimum amount necessary both for making a trade, and to have online in a trading account. Examine the fine print for additional fees, such as those for specialized trades like limit or option trades. You should also find out if there are premium services available such as in-house brokers, market and company analysis reports and tracking tools.
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Make a priority list of those options most important to you in a trading service. From most important to least, decide on things such as costs, service availability, transaction speeds, tools, whatever service you deem necessary for a successful trading experience.
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Make a table listing the services in priority order running down the left with the trading companies crossing the page at the top. Mark the companies containing those services and any pertinent detailed information regarding the service in your table.
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Use the created table to determine the usefulness of each company to your trading needs. Those that do not handle your priority needs you can mark off as unsuitable for use. Those that have the services desired you can compare the detailed information to determine which is actually best. For example, if customer service is high on your list, a firm offering 24-hour coverage should rate higher than one offering coverage only during stock market hours.
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Tips & Warnings
Many online brokers offer virtual trading accounts. Use these accounts to get a feel for the service, including speed of the website, and investing tools offered.
References
Resources
- Photo Credit business charts with sell? image by Andrew Brown from Fotolia.com
