The allure of online trading is one of the biggest reasons that investors have flocked to the Web in the past few years. And why not? Now you can buy shares in any company in less than 60 seconds, and at a fraction of the cost of a full-commission firm.

You can buy and sell stocks right over the Internet at any of the more than 100 discount brokerage firms that offer online trading. Some of them are well-established discount firms, like Charles Schwab, Waterhouse, and Quick & Reilly, that have launched o nline trading services. Others, like Ameritrade, Datek, and Web Street Securities, are companies that have been launched as Internet brokers. And some online brokers are subsidiaries of well-known investment banks, such as Discover Brokerage (owned by Mor gan Stanley Dean Witter) and DLJ Direct (owned by Donaldson, Lufkin & Jenrette).

All online brokers are not created equal. There are brokers that cater to frequent traders, and brokers that offer a wide array of mutual funds that you can purchase with no transaction fees. There are brokers that provide research, and brokers that offer customers the chance to get in on the ground floor of hot IPOs (initial public offerings). No matter what your approach to investing, there’s a broker out there who can provide services that can save you money. The first thing you need to do is figure ou t what’s important to you. All online brokers can let you buy and sell shares of stock, but here’s where the similarity ends.

Here are some points to consider:

1. How much do you have to open an account?

Some firms have no minimum requirement to open an account. Others can require a deposit of $1,000 or more before they will let you open an account. If you don’t have enough to meet the minimum requirement, y ou can strike that firm off your list.

Most firms offer a smaller minimum for IRA accounts or custodial accounts. Transfer your IRA to the firm, and open a regular brokerage account at other firm, and you can avail yourself of services that you might otherwise have access to.

2. Do you want to include mutual funds in your portfolio?

Many online brokerages offer mutual fund supermarkets, where you can buy and sell funds from many different fund families. The selection of funds varies from firm to firm, so make sure that a company offers the funds that you’re interested in before you sign up. If you’re not interested in funds, then you don’t need a brokerage that offers a large selection.

3. Do you want to buy or sell options, Canadian or foreign stocks, or penny stocks?

Not all online brokers offer options trading, stocks that trade on the OTC Bulletin Board or pink sheets, or stocks that are listed on foreign exchanges.

4. Is it important to be able to talk to an actual person on the phone?