Making the right choice can be confusing and tough especially when there are many alternatives available. Deciding about the ‘best suited’ online trading broker is no different; there are many such firms in the market place that appear similar. The online trading broker is an important and necessary criterion to be able to trade stocks; the execution of trade is carried through trading account with such firms. The online broker market is becoming more and more competitive, but differences exist in the cost structures and services offered. These major and minor differences are a crucial and the selection process requires adequate deliberation.

The traders ‘ profits can shrink in size if the fee and commission charged by the broker is high. Be sure to compare the basic fee and commission structure on market trades, limit trades, option trades and margin rates before choosing a trading account. There can be great disparity in the charges (ranging from $0 to $45) among brokers when it comes to broker-assisted orders. Furthermore, some brokers provide concessions if acertain transaction volume is maintained over time, while others don’t. Knowing about any transfer fees, inactivity charges i.e. when an account is not used actively, etc is important to make a good choice. The fee and commission structure should be studied well before opening a trading account as it can help to save (or lose) money over a period of time. The information is available on the respective websites of these firms.

It’s best to pick an online trading broker who serves as a one stop solution for any investment needs. Look for an online stock broker where in addition to stock trading, other investment products like options. mutual funds. exchange traded funds (ETFs ), education saving plans, OTC stocks. bonds. CD’s, treasuries, IPOs. forex, futures. etc are available. (See: Introduction To Investment Diversification )

The success of trading depends on the support system in the form of advanced trading tools. These tools give an edge to a trader and help to make most of a trade. The top names in the field offer a variety of advanced tools like level I and level II quotes, charts and graphs, news feeds, watch list, criteria based search, virtual trading, price-risk analytics and more. Reputable trading brokers also provide customized tools to suit the need of different traders. These are also important for those who like to trade using their mobiles while on the move. (See: Introduction To Level II Quotes )

This feature is of importance for those who wish to trade outside the home country in other stock markets. The decision to trade in other stock markets usually gives access to common stocks and exchange traded funds (ETFs) in those markets. The top end trading brokers give access to many international stock exchanges. Be sure to understand the geographical, currency risks as well as tax implications before deciding on the same.

Trading brokers provide the offer to open a new retirement account. There are various types of retirement accounts ranging from a Traditional IRA. Roth IRA. Rollover IRA. Individual 401(k), Simple IRA to a SEP IRA. While selecting an online broker, check whether you can open a retirement account through them and look at the charges. There shouldn’t be any extra charges like yearly maintenance, closure fee, etc. Many high quality platforms also offer retirement calculators, analyzers for comparative analysis of retirement accounts and basic resource to understand the processes and benefits. (Independent 401(K): A Top Retirement Vehicle For Sole Proprietors )

There is a trend of providing banking services by some big brokers. They usually charge no fee on maintenance, transfer, withdrawal. Many even provide interest bearing options on checking account and saving accounts and money market account (with combined features), easy tracking of transfer, deposit and withdrawal, ATM/Card facilities and even online bill payment.

This is especially beneficial for first time investors who may find the world of online trading complex. It’s a good idea to opt for a trading broker that facilitates easy access to research, knowledge resource as well as trading features. The process of using technical indicators, placing and tracking orders should be simple and convenient.

Some trading brokers provide great resources that help in building a sound knowledge base and keep traders up-to-date on events in the market. Other than research tools and reports, good brokers have special programs to guide novice traders, some offer online and in person training seminars and webinars, tutorial videos and even tax information among other things.

The speed and accuracy of execution is of great importance for traders and there can be a lot of difference in the same between the various trading brokers. Prospective traders (clients) must consider this aspect while selecting the account. (See: Brokers and Online Trading )

Online accounts are exposed to theft and other issues like technical glitches. Most brokers have multi-layered security systems in the form of PINs, security passwords, questions. The online security is an important issue and thus brokers do invest in the same. It’s a good idea to choose a well-known and reputed broker. The trading broker firm should be a member of organizations like Financial Industry Regulatory Authority (FINRA ), Federal Deposit Insurance Corporation (FDIC ) and the Securities Investor Protection Corporation (SIPC ).

These services may not be used frequently but having a high-quality support and customer service system in place is always good. The clients can contact the support staff via telephone and email in most cases. Some brokers provide additional facility of live chat, 24/7 availability and user forum as well.

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