| The Internet is a very useful tool for the wise | | | | also be hidden fees, so make sure that you |
| investor. | | | | understand the fee structure before you commit to |
| Online trading is a popular activity today. But you | | | | the brokerage. |
| should remember that you are still dealing with the | | | | The benefit with an online brokerage account is that |
| same situations you would be if working with a | | | | you can access most of them anytime you want to. |
| broker. | | | | Itching to look at things at 2 a.m.? No problem. Most |
| You have to be sure that you understand what you | | | | offer 24-hour services. |
| are investing in, the risks involved and the type of | | | | There are a few online brokerages that offer |
| investor you are. You still have to take the time to | | | | personal advice from an advisor, though many will |
| educate yourself on investing. | | | | charge your for it. However, many are full of |
| Too many people just jump right in there. The | | | | information in the forms of financial articles, portfolio |
| Internet has made this very easy to do. You have to | | | | tips and research results. |
| step back and think things through. You should have | | | | There are a number of factors that should go into |
| clear goals and know how long you are willing to let | | | | your online brokerage decision. Ask yourself what |
| your money grow. Know what your risk levels are | | | | you want out of a brokerage? Are you a die-hard |
| and what you want to see from your investments. | | | | buyer and seller? Then you might want to specifically |
| You should still take the time to call the companies | | | | look for a brokerage that facilitates midnight trades. |
| that you are interested in investing in and request as | | | | If you are interested in mutual funds, you should look |
| much information as they can send you. All | | | | for a brokerage fund that offers a fuller menu of |
| companies have investment packages that they send | | | | services. |
| prospective investors. | | | | Don't be shy. Call the online brokerage and ask |
| Basically, you still have to do your homework. | | | | questions. They should be more than willing to |
| Investing online is safe. Many people are still nervous | | | | answer them. Ask about the basics. What they |
| about sending personal information out over the | | | | offer, what their hours for customer service are, if |
| Internet. However, you will find that there are high | | | | they are registered with the SEC. Find out about the |
| security measures in place. Most online brokers say | | | | fee schedule and minimum balance to open an |
| that there is zero risk involved with passing your | | | | account. Ask about the execution of stock orders. |
| information online. However, there are some | | | | Does the website go down often? Do you return |
| precautions you should take. | | | | calls in a timely manner? What do you charge to |
| Just as in any other online account, you should only | | | | trade on margin? Ask to see a sample statement to |
| give out the required information. Anything that is | | | | see if it is easily understood. |
| option should remain unknown. Never give out any | | | | Navigate around the site. Do you like it? Is it fast |
| information as the response to an email. No financial | | | | enough? Can you find what you are looking for? |
| company will ever ask for passwords or other | | | | Online brokerages are very convenient for many |
| information in an email. And remember, you can | | | | people that are unable to get away during business |
| always call the brokerage if you have a question. | | | | hours to make a phone call or visit their broker. The |
| Most online brokerages offer a fee structure based | | | | Internet allows the investor the flexibility that is |
| on the kind of order you want to make. There can | | | | often necessary in today's active world. |