Best Online Stock Broker - Some Obliging Tips On Finding Them

By Author: Jemsh Smith
Total Articles: 39
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There is no such thing as a sure investment, but there are investments where you are sure to gain significant profit as long as you manage your time and funds well. For example, if you’re planning to go into stock trading, you’re going to have to do things right from start to the indefinite finish. And one of the most important parts of your beginning as a future star investor is finding a good stock broker or brokerage firm.

The Type of Broker You Want

There are two types of online stock brokers you can consider - traditional or discount. A traditional broker works for a traditional brokerage firm such as Merrill Lynch and Wells Fargo Securities, where you will be assigned a single broker to work on your account exclusively in managing your account. On the other hand, a discount brokerage company will practically leave you on your own to trade, and the only time you communicate with a broker, who can be any broker, is when you call upon them to execute your orders. You’d like to note, however, that even discount brokers these days such as E-Trade, TD Ameritrade and Scottrade have been doing research at a ...
... quality that closely resembles that which is offered by traditional brokers.

The Commission Difference

The main difference between going for a traditional and discount stock trading broker is the price you pay for each transaction. However, you need to realize though that you can save a good amount of money in terms of commissions if only you looked closer at your options. For one traditional broker, for example, you could be giving away $30 as commission, while for a discount broker; this amount could well be reduced to $8 for the same job. In many cases, the more you pay a broker, the better the services will be, including faster execution of your orders and more bonuses. But then again, this is not always true in all cases - reason you should always compare brokerage firms before deciding to go for any of them.

Start-up and Maintenance Costs

Start-up and maintenance fees are one more thing you need to pay special attention to when choosing a broker, and this is whether you’re looking out for the best stock brokers out there or the best forex brokers or even all-around brokerage services. Again, different companies charge differently, and that difference can be significant so you’ll have to give it a little research to know what your best options are. Usually, to open an account, you need $500 -1000. In other cases, a broker may ask you below $500, but don’t take that as a jackpot. You may be given the opportunity to start low, but they could charge you maintenance fees of around $ 5-15 quarterly if you dip below a certain minimum balance requirement. By the end of the year, that’s still going to add up and eat up a useful portion of your investment.

Stock brokers are going to give you different brands or levels of service, and it’s not even just about startup or maintenance fees or commissions. These companies can also give you perks, like an account that combines savings, checking and trading functionalities. The more brokers you consider the greater freedom of choice you have and the more likely you’ll end up with the stock trading broker indeed.