| What kind of investor are you? Are you an active | | | | an issue. This is usually an issue with big name |
| trader, a buy and hold investor, or do foreign | | | | brokers that haven’t really caught on to the low |
| markets interest you? Finding out what kind of | | | | cost mentality. |
| investor you are is the first step in comparing | | | | Customer Support. How easy is it to contact |
| discount brokers. Each online broker you work with | | | | someone at customer support? If you needed |
| will have a specialty they’ve built their business | | | | something urgent could you talk to a real person |
| around. Some specialties include customer service, | | | | about your account? |
| mutual fund management, low cost trading, real time | | | | Investment Products. Are you wanting to invest in |
| tools, user friendly interface, or having a network of | | | | more than just regular stocks, bonds, mutual funds, |
| traders interact with each other. Which of these | | | | and options? If you prefer mutual funds, does the |
| specialties is the best? The best broker is one | | | | broker have a wide range of no-load and load funds |
| that fits your needs. | | | | to choose from? Many brokers don’t like |
| The best broker comparisons highlight the differences | | | | trading penny stock or excessively risky stock. |
| and make suggestions based on what kind of | | | | Timely Execution of Trades. How long does it take |
| investor will be using the service. Some | | | | for the broker to execute an order after you’ve |
| comparisons are worthless because they are | | | | placed it? While most companies will be very close |
| comparing apples and oranges and they fault the | | | | on time of execution some are worst than others. |
| apple for not being an orange. Each company is | | | | A search engine can make short work of |
| different and they have grown in different ways. | | | | investigating if a company has had problems in this |
| For the majority of investors most online brokers | | | | area. |
| have all the services they could possibly ever need. | | | | Does the Broker have Physical Locations? Many |
| With that in mind what are the main areas to | | | | investors that are internet savvy have never placed |
| compare. | | | | foot in a physical location and have traded for |
| Ease of use. Websites that are easy to use will | | | | years. Other investors may take solace in knowing |
| help you avoid a lot of headaches. Usually within a | | | | they can drive to a branch and talk to someone face |
| few minutes of trying to sign-up you will have an | | | | to face. |
| idea of how easy the rest of the company’s site | | | | Trade Commissions. How much will it cost to |
| will be like. | | | | trade? How many trades do you anticipate |
| Minimum balance to start an account and avoid | | | | executing each year? How much of your total |
| fees. Are you an active investor with access to | | | | investment will the commission represent? Trading |
| enough cash to open an account. Do you have | | | | costs can add up quickly if you buy a number of |
| enough available to avoid account minimum fees? | | | | individual stock, buy weekly, or sell regularly. |
| For most online brokers this is not an issue because | | | | Research& Analysis Tools. Are you a technical |
| they have eliminated all these kinds of fees. | | | | investor? Free access to tools and research can |
| Inactivity fees. What if your account is inactive? Will | | | | save you hundreds of dollars each year. |
| you be charged a fee? Some broker’s | | | | Sophistication of trading tools. Can the broker |
| inactivity fees in are figured on a monthly basis. If | | | | perform the type of trades you are trying to |
| you are a buy and hold investor they may penalize | | | | execute? What kind of automation and |
| you for not actively trading. Again, this is usually not | | | | customization are available to you? |