Trading stocks online can be an exhilarating experience—especially if you end up making some money. After all, who doesn’t want to turn a hundred bucks into $5,000 or more, with just a few clicks of a mouse?

Unfortunately, it’s not that simple. Successful investing and trading requires skill, knowledge, patience and a bit of luck. Here are some tips to help you get started.

Opening a brokerage account

Before you start buying your first investments, you’ll need to open a brokerage account.

There are two types of brokers you can choose from: Traditional “full-service” brokers and discount brokers. A full-service broker does more than just place trades; he or she usually offers retirement planning, tax assistance and financial advice. Because of their personalized guidance, full-service brokers tend to charge more than discount brokers, who simply execute trades and offer fewer services and support.

If you haven’t opened a brokerage account yet, you should carefully research and compare your options to pick the brokerage that best fits your needs. If you think you may require one-on-one guidance and investment advice, a full-service broker could be the right choice. But if you’re comfortable with doing things on your own and want to keep your costs down, a discount broker could be your best bet.

How do I pick the best online broker?

Here are just a few things to take into consideration when choosing an online brokerage.

Commissions: Online brokerages charge you for every transaction you make, whether it’s buying or selling a stock or mutual fund. Commission fees per trade generally cost you anywhere from $5 to $10, depending on the brokerage. However, broker-assisted trades will cost you more, because you are getting assistance from a professional.

If you plan on actively trading stocks, you may want to opt for a brokerage that comes with the lowest commission fees, because costs can certainly add up over time. For example, if you place 10 trades a month at a brokerage that charges $10 per trade, you’ll end up paying $1,200 a year in commission fees.

Low initial deposit requirement: If you don’t have much money to begin with, you’ll need to find a brokerage that accepts a small minimum deposit to open the account.  Brokerages like E-Trade require a minimum $500 deposit, while other brokers like TradeKing and ShareBuilder do not require any deposit to open an account.

Customer support and service: If you are new to investing and need some help getting started, you should make sure you choose a brokerage that has good customer service, just in case you need help or have any questions. If you prefer personal interaction, consider a brokerage that has physical locations, such as E-Trade or Scottrade.

Best trading platform: Your brokerage should offer access to research and trading tools that will help you buy and sell stocks and evaluate investing ideas.

Your brokerage may also give you access to research reports, the ability to create real-time watch lists, track profits and losses on every trade, and more. All of these features can help you become a better investor and trader, so this is important to take into consideration.

Mobile app: If you plan on placing trades often and tracking your portfolio at all times, you’ll need to find a brokerage that offers a solid mobile app for your smartphone.

Promotions: Online brokerages can offer some pretty sweet sign-up promotions, from commission-free trading periods to putting cash back into your brokerage account. For example, OptionsXpress offers 50 commission-free trades for clients with $5,000 deposited.

What stocks should I buy?

It all starts with creating a personalized investment strategy that is based on your own goals, time horizon, risk tolerance and financial situation. Here are some points to consider before you invest.

How soon will you need the money that you are investing, and can you afford to lose what you invest? If you have a lot of high-interest consumer debt—such as credit cards, student loans or an auto loan—it may make more sense to pay off these debts first as you’d be getting a guaranteed return on your money.

If you need the money within the next five years, you might want to take a more conservative approach to investing and take less risk. If you have a much longer time frame, you can afford to take more risk because you will have more time to recover from any potential losses.

You may not get rich overnight. But with a good online brokerage, the right investment strategy and some patience and practice, you can make money trading stocks online.

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