| If you are looking for an online stock broker then | | | | compared to traditional broker. You can expect to |
| you are probably overwhelmed with choice. With | | | | pay anything between $4 and $20 per trade |
| dozens of big name banks and financial institutions | | | | depending on your type of account and obviously the |
| now offering a brokerage service, how do you now | | | | online broker you are using. |
| what to choose? The good news is that with so | | | | Almost every broker offer the same basic service |
| many good companies competing for your business, | | | | and to really figure out which one is best for you, |
| the service is tip top and very little separates the top | | | | you need to dig a little deeper. Here are some of the |
| 3 online brokers these days. | | | | things you need to look out for. |
| Online stock brokers essential fulfill the same service | | | | - Minimum account balance. How much do you need |
| that traditional brokers in an office used to do 10 | | | | to start and how much do you need to maintain your |
| years ago. Back then, if you wanted to buy or sell | | | | account. |
| stocks you had to pick up the phone and call your | | | | - Account level. Different account levels get charged |
| broker. He (or she) would then fulfill the order upon | | | | differently. Usually bigger accounts get discount |
| which a certificate would be issued to you as proof | | | | trades, so make sure that the advertised fee will |
| that you own that stock. | | | | apply to your account level. |
| Although stock brokers still exist, the process has | | | | - Margin and options trading. If you intend to use this, |
| been streamlined to the extent that you can sit in | | | | make sure your broker offer that and read their |
| your living room and buy or sell stocks at the push of | | | | terms carefully - especially for margin accounts. |
| a button. With an online stock broker, automated | | | | - Trading software. Some offer free trading |
| software can fulfill your order without almost | | | | software while others only offer it to those with a |
| instantaneously. | | | | certain account level. |
| There are at lest a dozen excellent online stock | | | | - If you are in a country outside of the USA, make |
| brokers, but the big 3 are still eTrade.com, | | | | sure that they will allow your country and if so, what |
| AmeriTrade and Scottrade. Although they aren't | | | | paperwork is required. Usually you will need copies of |
| necessarily the cheapest, their service and what they | | | | your passport, birth certificate and tax forms to |
| offer makes up for their bigger fee. With that being | | | | accompany your application. |
| said, even the fees are relatively small - at least it is | | | | |