How to Select an Online Broker

When it comes to the stock market, no matter what method you use to trade, there will always be a stock broker involved. When it comes to online trading, you will utilize the services of an online broker. As you are getting ready to sign up for an online broker and trading website, you will need to keep a few things in mind:

Brokerage Rates – How much will you be charged to buy and sell shares online? Usually an online broker will give discounts for the more shares that are purchased within a buy. Every online broker is different from their costs per trade; therefore you will want to research each one to determine what their overall rates will be.

Account Fees – On top of your brokerage rates you will also be charged account fees. A lot of investors are surprised by these fees and usually they are not advertised upon sign up. Therefore research your online contract, information and account fees prior to signing up with any particular broker.

Phone Access – Even though you are signing up with an online service, you will want to ensure that you can still communicate with your stock broker via telephone as well. Often an investor will have questions that cannot be answered online; therefore they should be able to communicated with their brokerage firm over the telephone for instant answers. You will also want to consider any associated fees with contacting your firm by telephone.

Money Access – One thing a lot of investors do not consider is access to their money. There are a lot of online firms that will hold your funds and you will have to request a specific withdrawal that can take seven to ten business days to receive. Other online broker firms, however, will give their customers instant access to their money. That means you can be given an ATM/debit card or even a checkbook to take money from your account instantly, rather than waiting for an issued check.

Korilynn is an avid writer that enjoys informing consumers on a variety of topics. For more information regarding online stock trading, visit TopOnlineStockTrading.com