Review of stock brokers online::A Basic Description of What a Stock Broker Does
Not all online stock brokers are the same.
Some offer better customer service, some may cater to people with higher net worth or to those with only a few spare dollars to invest.
This guide will show you what to look for in a broker, and how it applies to you. Account Maintenance Fees - If you find a stock broker that charges account maintenance fees, then walk away immediately.
Most brokers do not have them, and this is a sneaky way to derail your investments, and eat away at any potential gains you will make.
Find a better offer with another brokerage firm.
Trading Fees - Standard stock trading fees are around $10 plus or minus.
Beware of brokers that charge only a couple dollars or less per trade.
Do they sacrifice customer service?
Do their trades go through immediately or does your broker pool them with other trades to save costs?
If so, are these trades cheaper?
Some brokers have different pricing programs for traders of different net worth or different investment needs. Execution - Does the broker offer realtime trades?
Some brokers will save costs by pooling your trades with other customers trades, delaying the execution of the trade. Customer Service - Can you pick up the phone and call your broker if you have a problem or need investment advice? Joining Bonuses, Cash, and Free Trade Offers - Avoid being enticed by these offers since you'll probably stay with your broker for years or more, and a one time offer will not make much of a difference in the long term.
Be sure your broker cares just as much for its current customers as it does for its new customers.
Talk to friends who have experience with online brokers, read reviews, and do your research before committing to any one broker.
You may have to read the fine print if your broker does not show its terms upfront.
Good luck.
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