| Trading today is very different compared to the | | | | you. |
| trading that took place about 5-10 years ago. Access | | | | Execution |
| to quick online trade execution, which was a luxury | | | | When you are looking for short-term trades you |
| about a decade ago has become a standard amongst | | | | might want access to a few bells and whistles such |
| most brokers today. Nearly everybody with some | | | | as real-time stock quotes and some additional |
| money has dabbled in trading stocks at some point | | | | screeners. Starting out, you might not need these |
| because its fast, easy and cheap. For some its | | | | but its better to factor this into your decision making. |
| profitable and for others it can be a costly | | | | Some tools can save you a lot of money through |
| experience. Which category do you want to belong | | | | their use and others are more or less distractions. It |
| to? | | | | will depend on your trading style. Ideally, you should |
| If you said the first one, then lets discuss the criteria | | | | not be relying on your broker for too much advice. If |
| for picking the right broker especially if you want to | | | | you do, then your transaction costs could be |
| make short-term trades: | | | | significantly higher than what is advertised. Read the |
| Cost | | | | fine print. |
| You might be wondering why we have listed this | | | | Platform |
| first. Its not necessarily because we think cheaper is | | | | All the different brokers don't offer the same |
| better. Its because that's the first thing that every | | | | features. Sometimes they offer similar features but |
| broker advertises and every trader looks at. So, lets | | | | its easier to understand and use with one broker |
| get it out of the way shall we. When you start | | | | versus another. Look around the brokerage website |
| making your list of brokers, do not eliminate brokers | | | | for screenshots and demos. Sometimes they offer |
| solely on price unless the trade cost is way beyond | | | | interactive tutorials or let you test drive the site. |
| your budget. Always compare the price of atleast 5 | | | | Look for answers to some basic questions in the |
| brokers before you choose one. This is because | | | | online help section. If they aren't answered do they |
| some brokers have lower prices depending on the | | | | have an easy way to contact support? Send an email |
| number of trades you are going to make. As a | | | | or two with some questions and see how quickly |
| rule-of-thumb you can assume that if you are just | | | | they respond. If they are really bad when you aren't |
| starting out you will make 10-30 trades in a month. If | | | | a customer its not very likely that they will be much |
| you are an intermediate investor, then you could be | | | | better if you do become one. Through these steps |
| making 50+ trades a month. Keeping these numbers | | | | you should get a 'feel' for the brokerage and its |
| in mind, you can figure out what each trade will cost | | | | services without putting any money down. |