(Last Updated On: March 24, 2020)Trading and Investing have become much easier, thanks to the existing and emerging list of online brokers across the globe. Gone are the days when trading used to be a cumbersome task altogether. Now, everything happens at the click of a button.
But, selecting the most reliable broker is a fairly crucial decision especially when you have plenty of options to choose from online. So, you must keep in mind various factors before finalising any one stock broker. Further, you can find a wide variety of interesting and trusted broker reviews around to guide you here www.trusted-broker-reviews.com.
Now, let’s analyse the important criteria to be considered while making a choice of the perfect stock broker. What the broker can offer you? How you can benefit from it?
An Online Stock Broker: Key Points to See
A set of significant factors to go through before taking the broker selection decision.
This is indeed the topmost fact to be checked. Is the broker licensed to perform the said broking services? Is your account safe with the brokerage firm? The broker must comply with the financial industry and its regulatory body regulations. This is essential to assure that your money is in secure hands. Choosing a firm that is large enough, is trusted with a history of real reviews, and has been in operation for many years while being licensed are a few basic checks to run as a first step.
2. Account Opening Fees:
We all love saving money wherever possible. So, availing account opening discounts sounds quite lucrative. Different companies might charge you for basic services like account maintenance, trading platform fees etc.
You can compare different offers and incentives to make the right choice. However, attractive incentive should not be the sole criteria for choosing an online broker.
3. Brokerage Commission:
The commission you pay on your trades may vary from broker to broker. Also, it is based on the type of investing and trading you deal in. You may pay a different commission for equity, futures and options. Some companies charge lesser or no commission for different segments.
So, going for a low or no brokerage model is impactful. You may also get the opportunity to earn commission free trades on meeting specific requirements.
4. Initial Investment:
Is there a minimum amount that needs to be invested? Although, many firms don’t ask for a minimum deposit. But, some brokerage houses may require you to maintain a creation account balance. You should be aware of it before signing up.
5. Trading Platform:
Since, we are talking about online brokers, so you must particularly pay attention to their desktop and mobile applications. A friendly user interface and easy navigation usually attracts people.
Does the trading portal provide real time quotes? Are you able to set up customised watchlist for investments you are interested in? Does it provide investment advice?
You may also like: Best YouTube Channels for Stock Market Trading
6. Customer Services:
A good customer support is significant in building the reputation of any business whether online or offline. So, don’t forget to refer reviews and feedback from existing customers. Does it score well? We generally enjoy getting a quick response to our queries. A phone call or online chat, or direct assistance, in whatever form.
Remember, even DIY investors can require help, so there must be convenient contact methods.
Online Broker: Did you find one?
I know, broker selection can be time consuming and overwhelming. This needs to be handled very carefully. After all, it’s a long term commitment and should be managed efficiently. If you are a beginner, finding a good broker might seem a bit more exhaustive.
In the recent past, a large number of brokers have specialized in different areas. Therefore, evaluating and comparing all possibilities is vital.
Ideally, you need to pick the broker that fits well for your specific situation. A low fee, nominal brokerage, with variety of investing options and a great customer support can surely serve your purpose. After all, affordable and smart investments is what you wish to get here.
Did you find a good online broker for yourself? Or are you still in search for one? Feel free to discuss your queries and feedback thereon.