| Whether you start investing with penny stocks or | | | | but, getting it close to right at the beginning simplifies |
| expensive stocks like Google, or the many-priced | | | | the stress overall. |
| stocks in between, you need a brokerage account. | | | | I have traded with thinkorswim and they have very |
| An online account offers the cheapest way to trade. | | | | low-priced trades. Think or Swim offers a "Family and |
| This is a plus. However, if you want your hand held, | | | | Friends" $50 rebate if you sign up through someone |
| this may not be the route for you. Online brokerage | | | | you know. If this sounds appealing, open your |
| trading accounts are inexpensive because they offer | | | | account with a friend or, notify me and we can set |
| limited services. | | | | up a referral together. ThinkorSwim however, doesn't |
| No matter what the $ investment you make in the | | | | allow a lot of the penny stocks to be traded on their |
| trade, a brokerage firm always needs to assist you in | | | | platform. Not all brokers do all things. Did you know |
| these transactions. Therefore you always have a fee | | | | this? |
| attached to the buying AND the selling of your trade. | | | | Not all brokers trade all things! Talk and ask about a |
| Online firms provide minimal service to their | | | | specific trade style you envision and see what the |
| customers and have low fees. Full service brokerage | | | | sales folks tell you. Also, different brokers require |
| companies - like Schwab charge more. They also | | | | different minimum deposits to open an account. ASK |
| provide a higher level of customer service like having | | | | QUESTIONS. |
| your own broker to talk to instead of reaching a call | | | | Here are some questions to ask before opening your |
| center and getting the next available customer | | | | online brokerage account: |
| service representative. | | | | |
| There are vast differences between the various | | | | 1. What is the minimum amount needed to open the |
| online brokerage firms so, do your homework. A | | | | account? |
| common factor, if you're trading online, is that you | | | | 2. What hours are you open for customer service |
| have minimal services offered. | | | | calls? |
| Michael Cohen from Doubling Stocks recommends I | | | | 3. What is your minimum fee to buy or sell stocks? |
| looked at their website and, as Michael indicates, their | | | | 4. Is your fee based on 100 shares or a range of |
| "free trades" allow larger profit margins for small | | | | shares? |
| investors. I like the idea of "free trades" with Zecco, | | | | 5. Is there a monthly maintenance fee or minimum |
| especially for newcomers. Zecco does require a | | | | number of trades required for the account? |
| minimum set-up amount of $2500 to qualify for free | | | | 6. Will I get real time (or delayed) information? |
| trades. You can open the account with any amount | | | | 7. If I move my account to another firm what is the |
| (this is good) but are not eligible for the free trades | | | | charge? |
| with less than $2500 opening balance. Be sure to | | | | I've had personal experience with the following online |
| check the details on all mandatory fees because, as | | | | brokerage firms - Interactive Brokers, OptionsXpress, |
| we know, there is no such thing as a free lunch. | | | | and Think or Swim. I'm just now trying Zecco and will |
| Zecco needs to make money too. | | | | keep you posted. They all have benefits and |
| Be sure to check the details of your specific needs | | | | downsides. Be sure to ask questions but, don't be |
| with your broker before you open the account. You | | | | afraid to try. You can change brokers easily and, |
| can always change brokers later ( I changed 4 times!) | | | | usually without fees. |