Online Stock Broker - How To Find The Best Online Stock Broker

Posted: Jul 13, 2008 | Comments: 26 | Views: 32,532 | Bookmark and Share

Online brokers have an important role to play when you open an online trading account. Each broker can offer different services and features. You must research all the online brokers to find the best broker to meet your needs. I have listed a large number of online brokers and placed their information for you to read in one easy-to-read webpage. This is a free, "no-cost to you" service for our valued readers and can be found on this link: Best Online Stock Brokers

What to look for in an online broker.

Brokerage rates – this is the rate at which you are charged for buying or selling through your online account. These rates are usually charged based on a sliding scale. The more units you purchase in a single transaction, the less the "cost per unit" you will pay. The exact sliding scale can vary and may sometimes be negotiable for larger purchases. Compare each broker and read the fine print within contracts. Pick the one that best meets your buying and selling style.

Account fees
– Look for hidden fees in account contracts within the terms and conditions. I know of one broker who requires an extra $10 to transfer money out of an account "quickly" as against withdrawing money normally. Hardly a fair fee, I’d say. All fees should be listed in the terms and conditions listed in opening an account.

Phone access – Online services can go down during hours of service. Interruptions to broadband services, power outages and computer problems can stop you from accessing information you need at critical points. This is why you must have phone access to your online broker. Do not even consider using an online broker if they do not provide phone access.

Access to your money – I prefer having instant access to my money even though it is held in a cash account by the broker. Most brokers will have a cash account facility that is linked to your trading account. My account is linked to a MasterCard account, which means I can access that money anytime through any ATM or make purchases as I would normally using a MasterCard. Don’t be misled into thinking you must only have a separate cash holding account with the online broker. There are lots of options open to you as a client and good online brokers will provide several options for your cash holding account.

Extra benefits – seek out those brokers that give you extra incentives to open an account with them. Some offer a limited free brokerage period. Others will offer free reports on the markets you are interested in. These bonus offers can help you getting you account established and setup a profitable trading account. For more information on finding the best online stock broker feel free to visit our website.

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    Comments on this article

    0
    1. Trader Joe July 14, 2008
    Interesting article, another one is to make sure you have direct market access. Only really a problem in some markets, but make sure your orders are going straight through to the market, and not being re quoted by the brokerage house, which can sometimes lead to a tick or two being shaved off your entry/exit prices.
    1
    2. Jamie July 14, 2008
    Very good information. I have been looking for the best online broker that can help me trade options. I found them on your page link. Thanks
    1
    3. HappyT90 July 14, 2008
    Brokerage fees are not necessarily sliding scale. A lot of brokers offer flat-free rates. For example, I currently use Firstrade and they charge a flat rate of $6.95 per trade.
    1
    4. Mika July 15, 2008
    HappyT90, true, alot of brokers do offer fixed rates, but they are usually only up to a certain point. eg, anything under 10k is $6.95 per trade, but over a certain point they normally switch to a % commission.
    -1
    5. business credit cards July 24, 2008
    well done article and thanks for the tips! gonna take note of this in case I want to look for a broker someday. Thanks!
    0
    6. caricatures nelson santos July 29, 2008
    Best Online Stock Broker Caricatures
    0
    7. kml July 29, 2008
    You have a lot of good info on this site. Thanks for stopping by mine!
    0
    8. Mike July 31, 2008
    Great article. There's such a wealth of useful info on this site. Thanks!
    1
    9. Quang August 01, 2008
    Very useful article for stock trading.
    2
    10. Ronald Kwok August 04, 2008
    Thanks for a very informative article.
    1
    11. Benjamin Uchenna Isieke August 08, 2008
    The article is very good for new comers like us. It will help us know how to start. Thanks.
    3
    12. ajibade August 21, 2008
    hello,
    I would like to invest some money into penny stock.i would like to know the services you render and charges for them.Also i will like to know maybe you have recommend penny stock.hope to hear from you
    0
    13. Hearnnzzy September 14, 2008
    i need a training demo
    -1
    14. Minal Rathod October 02, 2008
    Detail information is not given about stock broker
    1
    15. lanre November 05, 2008
    i will like to no morre about shares am a nigerian ...i will like to no if i can invest .....in shares abroad
    3
    16. Venkatesh Iyer November 30, 2008
    Your article is very informative and worth reading. Apart from the fees they charge, it is very important that they give good recommendations or tips for short term as well as long term. This should be from the investors or customers angle and not from the brokerage house angle. In case of stock trading, it is important to ensure that the stocks once purchased have been credited to your account in a certain period of time. And lastly when the stocks are sold, the proceeds should be credited to the investor or customer's account in the particular period of time. One has to be little cautious while trading.
    0
    17. sanjeev ghimire December 02, 2008
    i want to be a online gold broker. what to do? please provide me suggestions.
    0
    18. blessing emebu January 15, 2009
    thank you for this timely info, i now know more than i use to know. God bless you guys.
    0
    19. tim March 01, 2009
    would this be an good investment buying 5000 shares of rite aid stock for 28cents per stock $1400.00
    0
    20. nolosoft April 08, 2009
    Do you mind have a look at TradeMax? NoloSoft TradeMax is a tax software designed for active investors or traders to manage their trade data maximize their gain/loss strategy, prepare their Schedule D. http://www.nolosoft.com.
    0
    21. drmony July 02, 2009
    i think it is a really informative article
    0
    22. kingsley July 18, 2009
    please, can you connect me to a good online broker that can serve me here in Nigeria. i have been trying to get one but they all seem to desl with only US and Canadian citizens. Thanks
    0
    23. Frederick Rush July 30, 2009
    Thanks for the information I will pass it along to my friends.
    0
    24. Imran October 29, 2009
    I want to know abot the stock exchange working process.How to invest in Shares,which are the best online stock brokers etc.How to maintain balanced portfolio
    1
    25. Mahesh December 02, 2009
    Account opening (one time) charge -- 500 Rs & Brokerage for Intraday 0.02 paisa only & delivary 0.20 paisa.. call or mail me on silvercbz_1@yahoo.co.in/9768844657
    1
    26. halima khatun January 11, 2010
    hello, as new commer in this field what is the minimum one will need to spend a year,do i need to spend each and every month or can i invest when it sutes me. please reply with clear instructions. thank u
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