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