The Best Brokerage Savings Account
With so many choices and so much advertising, it can be difficult to determine the best brokerage account option. When it comes to choosing a broker, there is no right choice as there are a multitude of investment styles, investing time frames and financial statuses that play into the decision-making process. Regardless of your financial situation or goals, however, the best brokerage for you should have some things in common with the best brokerage account for another investor.
Other People Are Reading
-
Low Fees and Commissions
-
Brokerage accounts are designed to allow you to place your own buy-and-sell orders for stocks and other investments. Even if you do not trade often, you want to have low commissions on trades to allow you to invest more of your money versus paying fees. Placing a trade is never free, and the cheapest brokerage commission schedule is not reason enough to open an account. But you should look for reasonable commissions on trades and orders.
High Savings Interest Rate
-
Brokerage accounts usually pay interest on idle, non-invested balances. If you are planning on having your brokerage account double as your savings account, make sure you are earning the highest interest rate possible. While you likely will not find rates as high as you would from a bank certificate of deposit, the best brokerage accounts will offer competitive interest rates, particularly on higher balances, and offer several interest earning options for your cash.
-
Excellent Customer Service
-
Being able to reach someone via the phone and chat or to receive a prompt reply to your email inquiries may be the number-one criteria when determining the best brokerage account for your needs. Money issues, particularly investing, can be complex and require the assistance of a knowledgeable, friendly representative. You should be able to gauge the customer service level of your brokerage account when provider when you first call for information, but customer reviews and ratings also provide feedback. The website should also provide ample information and resources to aid you in seeking an answer to your questions, even without a representative.
Simple Money Management Features
-
Although there are rules that govern how you can move your money between your brokerage and IRA, savings or checking accounts, the best brokers provide the tools, features and support to make any money transfer requests simple and convenient. You should be able to contribute to your IRA, withdraw funds to your checking account and easily deposit new funds without significant amounts of paperwork or processing, particularly if electronic transfer options are available.
Array of Investment Options
-
More investment options can result in confusion, but the best brokerage houses will not limit your investment choices or show preference to their own branded products. Investing successfully is tricky enough without worrying if you have explored all options or are getting the best possible product for your financial needs. Review the brokerage firm's research and breadth of investment options -- you want to be sure that you can access the products that are best suited for you when the need arises and not be limited in your choices.
Gratitude for Your Business
-
Just because a brokerage account offers special benefits to opening and maintaining an account does not automatically qualify it as the best option for you. But new account bonuses, commission-free trades, rewards programs, access to new products and feeling that your brokerage account will go the extra mile for you when you have an issue are criteria to evaluate when deciding on the best brokerage account.
-
References
- Photo Credit stock market analysis screenshot image by .shock from Fotolia.com
