How to Find an Online Stockbroker
In the past, it was common to meet with a stockbroker in person at a brokerage firm or talk with the broker on the phone. Although traders still use brokerages today, it is much more common to trade stocks with an online stockbroker. The benefits of using an online broker include no-hassle trading and the ability to trade from your own home or office. However, you must still choose an online stockbroker that is well suited to your specific needs.
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Instructions
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Write a list of aspects that you want from an online stockbroker. This may include personal checking, high interest rates, low fees, international trading, free trades and low minimum balances.
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Determine what kind of trader you are. Some stockbrokers are better for long-term traders than for day or swing traders. For example, if you are a day trader, it is best to find a broker that has low transaction fees.
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Research online stockbrokers. Go to the Consumer Search website (see Resources) and read reviews for the best brokers in each category.
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Evaluate online stockbrokers. Go to the website of each broker and read the requirements for opening an account. Find out the minimum balance for starting an account, margin requirements and transaction fees. Review all monthly specials as well.
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Ask questions. Call a customer service representative and ask any questions that the website was unable to answer. Read the fine print before agreeing to sign up for an account.
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Tips & Warnings
Some brokers may offer free trading software as an incentive to sign up.
References
Resources
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